GTL Limited has been unable to sell its energy management business to Essential Energy India due to the dispute over the share of various unsecured lenders on the proceeds from the sale. In 2011, the company decided to undergo a corporate debt restructuring, in which 25 secured lenders agreed on deferred payment and an eventual liquidation of assets. However, GTL also has some unsecured lenders who lent capital to the company without any collateral. These unsecured lenders may suffer losses once sale is made due to the fact that the sale proceeds must legally be first divided among the secured lenders and then with the unsecured ones.
GTL has decided to sell its some assets to Essential Energy India in the form of a slump sale. Instead of selling the entire company, GTL will only sell the power management contracts which span over 10 years to Essential Energy for around 26,000 towers.
