LATEST ON GTL INFRASTRUCTURE LIMITED :-AS PER BSE INDIA ON JAN 7 2021

 

GTL Infrastructure Limited Details as on December 31, 2020 

Sr. No.                        Particulars                                                           In INR Crore 

1 Loans / revolving facilities like cash credit from banks / financial institutions 

A. Total amount outstanding as on date                                                      4,969.40* 

B. Of the total amount outstanding, amount of default as on date              1,807.71 

(Note) 

2 Unlisted debt securities i.e. NCDs and NCRPS 

A.Total amount outstanding as on date B. 

Of the total amount outstanding, amount of default as on date - 

3 Total financial indebtedness of the listed entity including 

short-term and long-term debt                                                                                        5,712.00

Note: As a result of the unprecedented shutdowns / bankruptcies and consolidation in telecom sector during last 2-3 years, debt of the Company became unsustainable and there is urgent need to restructure the same. 

However, in 2018, the Indian rupee lenders of the Company, in their consortium meeting, decided to assign their respective debt to Asset Reconstruction Company as per the provisions of Prudential Norms on Income Recognition, Asset Classification and Provisioning pertaining to Advances dated July 1, 2015 (IRAC Circular / Prudential Norms).

1 Accordingly, as on September 7, 2018 lenders having debt value more than 75% to total debt assigned and transferred their respective debt to Edelweiss Asset Restructuring Company, acting as a trustee on behalf of EARC - Trust SC 338 (EARC). 

The Company has initiated several proceedings before multiple forums for enforcement of the IRAC Circular. The question of whether the remaining public sector lenders continue to be entitled to act as "financial creditors" is also the subject matter of the said proceedings. 

The matter is currently pending before the Supreme Court, which has issued a status quo as on March 6, 2020. Further, EARC was fully aware of the status of the Company at the time of assignment and had an obligation to restructure the debt in time bound manner after completing TEV study as per RBI guidelines. However, EARC / lenders failed to restructure the debt of the Company in timely manner, thereby debt level of the Company continues to remain unsustainable. Meanwhile, the Company has received recall notice from EARC and IDBI Bank claiming alleged defaults during quarter ended September 30, 2020. 

The Company is seeking legal advice and will take such necessary actions as it may be advised. However, the Company simultaneously is in discussion with lenders. * It may be noted that the Company has raised objections to withdrawals of INR 356 crores made by lenders in violation of EARC's mandatory obligation to restruct nd in direct contravention of Status Quo order of the Hon'ble Supreme Court of India