GTL Infrastructure is reportedly aiming to become debt free in the next 3-4 years, as it has completed a Strategic Debt Restructuring (SDR) exercise. GTL Infra is a Global Group company, while the other companies in the fold are network services firm GTL and passive infrastructure sharing firm Chennai Network Infrastructure (CNIL).
CNIL was a special purpose vehicle formed to park Aircel’s 17,500 telecom towers and 21,000 tenants, which it bought in 2010 for Rs 8,400 crore.
As part of SDR, CNIL will merge with GTL Infra in 1:1 share ratio for which it got approvals as per regulatory filings. GTL Infra has completed its first step in the SDR process last week. This includes reducing debt of its combined tower companies (GTL Infra and CNIL) to a sustainable level of Rs 4,800 crore, including proposed restructured amount of bonds.
A total of 22 lenders, led by Union Bank of India, have converted Rs 4,500 crore of debt into equity.