An overseas fund controlled by Deutsch Bank is reportedly in the process of acquiring a stake in Spice Communications. The fund is expected to pick up the stake after acquiring the debt owed to Siemens and Motorola. The deal is part of a debt-restructuring process after Spice defaulted on its payments to Siemens and Motorola. Following the restructuring, the $120 million debt has to be paid over a period of five years. Sources say the debt has been acquired at a substantial discount with the balance being converted to equity stake. At present, different foreign investors in the company own up to 77 per cent of Spice’s equity. The Indian promoters ?? the Modi Group ?? hold about 23 per cent stake. Of this, 13 per cent is held directly while another 10 per cent is held through MCorp Global, a Hong Kong-based entity.
