Infrastructure services provider, GTL Group is planning to sell its assets to pay off its debt. As per various industry reports, the group plans to sell operations and maintenance part of its 28,000 towers. Besides selling its assets, the company is also open to diluting promoter stake and forming joint ventures.
At present, the GTL Group has a total debt of Rs 130 billion and is facing mounting pressure from lenders for repayment of loans in the midst of a court case to liquidate the company.
Established as a small partnership firm in 1985, GTL in a short span of time emerged as the country?s leading telecom infrastructure provider in the country. However, the regulatory uncertainty witnessed in the telecom industry during 2010-12 coupled with the company?s debt-fuelled aggressive plans to expand its presence in the telecom infrastructure space has adversely impacted the group?s financials.
Earlier, in mid-2011 in a move to address its high debt, GTL and its lenders agreed to restructure its Rs 80 billion debt. The debt recast has, however, failed to help GTL improve its finances. As per experts, going forward, GTL needs to generate higher earnings, or raise equity, or sell assets to cope with its mounting debt.
