Unitech has taken short-term debts from international markets to meet its day-to-day operational costs. These loans are guaranteed by its parent firm Telenor. Sigve Brekke, managing director, Uninor said that following the 2G issue and the controversies associated with the sector, the country?s debt market has become very limited for operators.
He added that the operator had pumped in Rs 61 billion for a 67.25 per cent stake into the joint venture, whose total funding requirements are about Rs 150 billion. The company planned to raise Rs 80-90 billion more through debt, and since this option is no longer available, the board of Uninor has opted for a rights issues to meet the funding requirements of the company.
Prior to this, Unitech had obtained a stay on the rights issue in a Gurgaon district court, a decision that was upheld by the Punjab and Haryana High Court. Thereafter, the Supreme Court dismissed the Punjab & Haryana High Court order that prevented the company from proceeding with the rights issue to raise Rs 67 billion and directed the High Court to rehear Unitech and Telenor?s cases.
