An overseas fund controlled by Deutsch Bank is in the process of acquiring a stake in Spice Communications. The fund is expected to pick up the stake after having acquired 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 into 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.
