GTL Has Filled A Petition Against Aircel To Recover Its Rs 900 Crore Outstanding And Rent Cancellation
GTL Infrastructure has filed a petition in the Delhi High Court to restrain the restructuring of Aircel till the recovery of Rs 900 Crore including rent cancellation prematurely. The case will be heard on Thursday in the absence of the other party the court will not represent Aircel. With this, the negotiations with the lenders for the restructuring of a loan of Rs 15,500 Crore could be stuck in its talks.
Aircel’s parent company, Maxis Communications is not in a position to do the repayment. So it has been talking to the bankers for the last two months to settle this. Aircel’s revival depends on loan restructuring. In such a case, if the order is issued in absence of the Aircel representative over the petition of GTL, then the fund of Aircel will be freezed and it will remain similar till the matter is settled.
According to GTL’s plea, Aircel has asked to shut down the tower in six service areas where the spectrum has surrendered. Aircel has also said to shut its rental payment from February. On this, the tower company says that Aircel is trying to terminate the existing site agreement incorrectly and illegally. GTL Infra’s spokesperson said, “We cannot comment on the matter as it is under consideration in the court but after the SDR, our Majority Stake has gone to the banks. Therefore, we will take all necessary steps for the recovery of dues.”
In this case, Aircel has refused to comment. It has been reported in December 2017 that Aircel promoter Anand Krishnan is ready to make $ 500 million as a growth capital for the restructuring of Indian Venture. However, this venture has not received any returns in the last 10 years. GTL Infra bought telecom towers of Aircel for Rs 8026 Crore in 2010. Nearly half of this was paid for tower leasing due to the expansion of Aircel’s network.
However, when the 2G spectrum allocation scam case came up, the sector’s Expansion Planes went on the low drop. After this, Jio entered the market, the price war started in the industry, due to which the small telecom companies were forced to consolidate. With this, the profit estimates of GTL Infra got worsened and it was difficult to repay the loan taken for the purchase. This led to the company’s corporate and strategic debt restructuring. Aircel had decided to close down the loss-making services in Haryana, Gujarat, Madhya Pradesh, Himachal Pradesh, Uttar Pradesh, and Maharashtra to stay in profit. The company was also planning to shut down its service in Mumbai and Delhi as the revenue was not being made in return of investment.