Lenders to debt-laden Vodafone Idea look at swapping debt for equity

Over the years, Vodafone PLC has invested $30 billion in Vodafone India and has written off the entire investment

Lenders to Vodafone Idea Ltd (Vi) are discussing a plan to swap their debt for equity which would significantly dilute the stakes of the firm’s promoters -- Vodafone PLC and the Aditya Birla group.

According to a banking source, the debt-to-equity swap plan is on the table and both promoters have agreed to dilute their shareholding. While Vodafone PLC of the UK owns 45 per cent in Vi, the Aditya Birla group holds a 27 per cent stake in the telecom firm.

“All options are being discussed. No one wants this company to go bankrupt or into liquidation,” said the source.

The telco