GTL’s lenders request Tirodkar for a personal guarantee as part of the CDR package

The GTL Group?s lenders have reportedly asked Manoj Tirodkar, promoter, GTL Group for a personal guarantee as part of the negotiations for corporate debt restructuring (CDR).

It is believed that Tirodkar is reluctant to agree on the extent of guarantee sought by the 25-member consortium of lenders, led by IDBI Bank and ICICI Bank. The package is expected to be finalised next month.

According to CDR packages, banks often ask for such additional security if the debt is of a significant amount. The guarantee given by the promoter makes him personally liable in case of a default.

The combined debt of the three GTL group entities ? GTL Limited, GTL Infrastructure and Chennai Networks Infrastructure Limited (CNIL) stands at Rs 162 billion.