Canara Bank drags GTL group to NCLT after company defaults on its debt repayment worth Rs 1,000 crore
While GTL has defaulted on Rs 459 crore loans from the bank, GTL Infrastructure failed to make timely payment of Rs 541 crore to the lender
Mumbai: State-run Canara Bank has taken telecom infrastructure player GTL group to the National Company Law Tribunal (NCLT) after the company defaulted on its debt repayment worth around Rs 1,000 crore.
While GTL has defaulted on Rs 459 crore loans from the bank, GTL Infrastructure failed to make timely payment of Rs 541 crore to the lender.
"Canara Bank has filed an application for initiation of corporate insolvency resolution process against GTL and GTL Infrastructure," companies said in separate filings to the exchanges.
GTL, however, claimed that it is a victim of consolidation in the telecom sector. The last of such circumstances occurred in the last 12 months which saw the unprecedented shut down of three major operators --Aircel, Tata Teleservices and Reliance Communications--as well as the forced consolidation of Vodafone and Idea and Telenor and Bharti Airtel," GTL said in the statement.
These events, which have been entirely beyond the control of the management, have had a material and adverse impact on the operations and prospects of the company, the company said.
As of March 2018, GTL had debt of Rs 6,502.44 crore while that of GTL Infrastructure had Rs 4,956.4 crore.
GTL shares were trading down around 2 percent at Rs 5.79 on the BSE at 1300 hrs, while GTL Infra was trading down at 5 percent at Rs 1.35.
Vodafone is expected to hold around 47.5 percent stake in the merged entity and rest will be owned by Idea and promoter Aditya Birla Group.
Anil Ambani-run RCom's plea is expected to be heard by the appellate tribunal in the coming week