Chennai-based telecom tower company GTL Infrastructure, which owes over Rs 4,000 crore as loans to a consortium of banks led by Union Bank of India, has approached the Madras High Court challenging the action initiated against it under the Insolvency and Bankruptcy Code.
GTL Infra, after Chennai Network Infrastructure (CNIL) was merged with it, had a debt of Rs 13,318 crore, which stood at Rs 10,000 crore in April 2017.
After a strategic debit restructuring (SDR), the debt was reduced to Rs 4,841 crore.
Subsequently, the banks discontinued the restructuring scheme and downgraded the companies account as a 'Non-Performing Asset' (NPA).
A part of the loan was then converted as equity of the company to be sold to an Asset Reconstruction Company (ARC).
According to the petitioner, in February, Edelweiss Asset Reconstruction Company (EARC) jointly with the Bank of Merrill Lynch offered an initial bid of Rs 2,000 crore on a full cash basis against the outstanding dues of all the lenders including Canara Bank and UBI.
"Post negotiations, EARC also increased its bid to Rs 2,113 crore and then Rs 2,400 crore equivalent to the valuation submitted by the valuation agencies. All the lenders agreed for the offer and agreed to take up with their respective competent authorities for approval."
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