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Telecom tower firm, GTL Infrastructure, has warned that its operations will be hit with the shutdown of multiple telecom players and filing of bankruptcy petition by Aircel early this month. The company said it might lose 9,000-11,000 tenants over the next one year but will continue to remain a standard asset with the banks by cutting costs across the board.
In a statement to the exchanges, the firm said Aircel had issued exit notices for six telecom circles — 1,994 sites — and had estimated downsizing of 6,606 more tenancies. But, in March, Aircel unexpectedly filed for bankruptcy before the National Company Law Tribunal, Mumbai.
“At this stage, it remains unclear whether any revival (of Aircel) would be possible and the outcome of the insolvency proceedings remains to be seen. In the event no revival is possible and Aircel becomes insolvent, the company would lose all 23,727 of Aircel's tenancies,” the company said.
With this, the company's tenancies may close at 26,639 by March end, against 51,587 tenancies as of December last year. GTL Infra would end the current fiscal year with revenue of Rs 22.67 billion, compared with earlier projections of Rs 26 billion.
American Tower Corporation is also expected to lose 60,000 tenants in India.
GTL Infra said Aircel currently has dues of Rs 3.84 billion and if it becomes insolvent, Aircel’s dues for the remainder of the contract term would be Rs 127 billion. Despite closure of these operators, GTL Infra said it would not have any overdues to lenders. The company has already reduced its debt to Rs 40 billion with Indian lenders. Lenders are, however, expected to sell their GTL Infra debt to asset reconstruction companies and have invited bids.