Banks open to MTNL debt restructuring, reject possibility of haircut

Bankers to state-run Mahanagar Telephone Nigam Ltd (MTNL) have ruled out any haircut but say they are open to debt restructuring, including conversion of debt into equity, or monetisation of the telecom operator’s assets.

 

Cabinet Secretary TV Somanathan has called a meeting of various stakeholders next week to find a way out for the state-run MTNL, which has defaulted on bank loans.  

 

Bankers said during the meeting they would seek assurance from the Centre to repay dues and details on MTNL assets, which can be monetised. As a last resort, bankers may demand legal remedy to clear the dues.

 

“We