Facing cash crunch due to subdued financial performance, state-run Mahanagar Telephone Nigam Ltd (MTNL) is planning to restructure its Rs 7000 crore loan taken for buying 3G and BWA spectrum last year.
The PSU is planning to convert Rs 3,000 crore loan into long term debt.
MTNL, which operates in two metros -- Delhi and Mumbai-- had raised a short-term debt of over Rs 7,000 crore for acquiring 3G and broadband spectrum.
The company has already restructured Rs 3,500 crore of debt, repaying Rs 500 crore and tying up with two state-run banks for the rest Rs 3,000 crore, sources in the know said.
The sources said the company is expected to convert this short-term loan into a long-term debt for a period of seven years and is likely to complete this process by July this year.
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