Tulip Telecom gets formal approval for CDR proposal

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26 Aug, 2025 12:21

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Enterprise data services provider Tulip Telecom today said it has received formal approval for restructuring its debt by the Empowered Group of the Corporate Debt Restructuring (CDR) Cell. The company's domestic lenders, a consortium of 13 banks and financial institutions, approved its CDR package, which includes a 30-month moratorium on principal and 18-month moratorium on interest, Tulip said in a statement.

The promoters of Tulip Telecom have already infused the required promoter's contribution of Rs 60 crore as required by the approval, which shall be converted into equity, it added. The CDR programme will cover about Rs 3,000 crore of debt. On FCCB redemption, Tulip said its ongoing engagement with bondholders "continues to be constructive and progressive." It added that it "expects to reach an acceptable solution for all stakeholders at the earliest possible date." Tulip had issued FCCBs worth USD 140 million in 2007, which came up for redemption in August last year.

However, it has been unable to repay the FCCBs and has been engaged in discussions for repayment of the same. Foreign Currency Convertible Bonds (FCCBs) are a loan instrument used to borrow money from overseas markets. "Tulip has built a strong infrastructure for its enterprise data business and this approval shows the long term commercial viability of our business. This CDR package will enable the company to quickly return to a position of strength," Tulip Telecom CMD H S Bedi said. Shares of Tulip Telecom fell by nearly 4.9 per cent to Rs 18.50 per share, valuing the company at Rs 268 crore on BSE.