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Not all lenders may agree to GTL twins' debt restructuring
Gopika Gopakumar of CNBC-TV18 reports quoting sources that it may not be necessary that the lenders to the GTL twins will agree to all the proposals given under the restructuring proposal put forth by ICICI Bank.
The GTL twins were on fire today as lenders of the debt-ridden GTL and its group companies meet to discuss the restructuring package. Shares of GTL shot up by 15% and GTL Infra by 11% after CNBC-TV18 reported that some lenders may be looking to convert debt into equity.
Some lenders have asked for a 25% conversion of debt into equity in GTL Infra and CNIL, and also 7.5% of debt into equity in the case of GTL, reports Gopika Gopakumar.
It is expected that bankers will most likely discuss ICICI Bank 's proposal to transfer its loans from GTL to CNIL's book. Remember that ICICI had earlier given unsecured loans worth Rs 650 crore to GTL and now wants it transferred to Chennai Network Infrastructure Limited (CNIL). In return, the bank will transfer its 29.5% stake in GTL to its promoters, reports Gopika Gopakumar.
This could possibly be laid down as collateral to the CNIL lenders. Whether the CNIL lenders will agree to the terms of this restructuring package or not is a matter of speculation.
That apart, interest rate deductions and also promoter's contribution in the restructuring package is in the limelight. However, bankers are unlikely to give additional funding to GTL and its group companies. Gopakumar reports quoting sources that it may not be necessary that the lenders will agree to all the proposals given under the restructuring package. The final nod to the package is awaited post today's meeting.
