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Submit recent AGR blow, lenders steps to restructure phrases with Vodafone Thought

Vodafone Thought’s (Vi) lenders are planning to strategy the finance ministry searching for safety towards the massive blow they’ll face if the telco shouldn’t be given some type of aid towards statutory dues, failing which it could collapse.

Based on banking officers, public-sector banks which are closely uncovered to the corporate are notably nervous.

Vi’s lenders are lining up conferences within the coming weeks with the management staff of India’s solely loss-making personal telco, searching for readability over its deliberate Rs 25,000-crore fundraising, with out which sustaining the operations could be uncertain past a degree, they mentioned.

“It is fairly a shocker … The lenders have held casual discussions and are planning to as soon as once more enchantment to the finance ministry concerning rest on statutory dues,” mentioned a public sector financial institution official.

The “shocker” that the official was speaking about was the Supreme Court docket verdict on Friday, whereby the highest court docket refused to permit the telco to strategy the Division of Telecommunications to appropriate alleged errors within the division’s calculation of adjusted gross income (AGR) dues.

Vi had hoped that if the correction was allowed, its AGR dues of Rs 58,254 crore could be decreased to half.

Lenders are additionally now steps to restructure their phrases with Vi. The banks didn’t reply to ET’s queries until press time Friday.

Lenders say the federal government would be the greatest loser if

was to go down below, with public sector banks the toughest hit.

The banks had in June additionally approached the finance minister’s workplace to lift considerations over the destiny of Vi.

“Vi might go down below as a result of this verdict and the most important loss must be borne by the federal government and its state-run banks…the court docket hasn’t even accounted for crores of Vi clients and 1000’s of jobs that may very well be misplaced if the telco goes into chapter 11,” the official mentioned on the situation of anonymity.

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