GTL Infrastructure, the nation’s fourth-largest telecom tower firm, has reached a settlement with its lender, IFCI, with the latter agreeing to return 7.6 per cent of the corporate’s stake to promoter Manoj Tirodkar, taking his holding from 20 per cent to 27.6 per cent.
The return of stake to Tirodkar will assist the promoter retain management, as his stake had obtained low sufficient to tempt a takeover try.
Tirodkar misplaced management over 18 per cent of GTL Infra’s stake after its subsidiary, Chennai Community, defaulted on a Rs 250 crore mortgage to IFCI in 2011. IFCI instantly invoked the shares pledged with it and offered a part of it available in the market to recuperate its loans. In return, GTL sued IFCI on the Delhi excessive court docket, saying IFCI didn’t give it a discover earlier than it offered the shares. The court docket upheld GTL’s argument and the shares offered by IFCI weren’t transferred to the client.
GTL officers say in step with a company debt restructuring (CDR) plan authorised by its lenders, IFCI had agreed to return the shares to the corporate. Chennai Community was acquired by GTL from Aircel for Rs 8,400 crore in July 2010. The corporate has now ceased to be a subsidiary of GTL Infra and has reported a lack of Rs 1,600 crore between July 2010 and March 2013.
GTL’s fortunes turned for the more severe after its merger with RCom’s tower subsidiary, Reliance Infratel, fell by. Inside months, the corporate’s shares tanked by a bit of over 80 per cent and the corporate began defaulting on loans to its lenders. The 2 listed entities of the group, GTL Infra and GTL Ltd, fell sharply and the promoters started dropping their grip over GTL Infra. GTL is now buying and selling at Rs 14 on the BSE change, whereas GTL Infra’s shares are as little as a rupee every. GTL can be anticipated to get compensation of Rs 1,000 crore from Aircel, because the latter failed to supply a assured enterprise.
Aircel had promised to provide Rs 17,000 crore of enterprise to GTL Infra over 5 years.
Dealing with a tricky telecom market, it failed to take action. The corporate now expects the business’s fortunes to vary with the permission for 100 per cent foriegn direct funding within the telecom sector and roll out of providers by Reliance Industries.