Tulip Telecom hits upper circuit on debt recast talks
01 Jan 2013
Tulip Telecom surged nearly 5 per cent to Rs34.30 a share, hitting the upper circuit limit on the exchanges on Tuesday, after the company initiated talks to restructure long-term debt.
The company's shares continued to be locked in the upper circuit at Rs34.30, up 4.89 per cent, on the Bombay Stock Exchange during the entire day.
"Tulip, which designs and manages communication networks of large enterprises, is negotiating a moratorium on principal and interest payments with banks, and extending the repayment period," the company said in a statement.
Tulip, which had consolidated debt of Rs3,030 crore as of September-end, had missed redemption of about $140 million convertible bonds in August 2012.
The company had issued $150 million bonds in June 2007, which were due for redemption on 26 August 2012. The New Delhi-based company had bought back a portion of the bonds during 2009 and as on 26 August 2012, the aggregate principal amount of bonds outstanding was $97 million, which represented redemption obligations of $140.17 million.
''The board of directors of the company at its meeting held on 31 December 2012 has approved the corporate debt restructuring (CDR) system for restructuring of its debts, including the draft of the debtor-creditor Agreement to be executed for implementation CDR System,'' the company said in a statement.
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