Vodafone Idea dues conversion will free up money to pay lenders
Vodafone Idea’s (Vi’s) final decision for conversion of dues to authorities into fairness is effective for loan providers as its liabilities will reduce and a lot more funds will be readily available to assistance the enormous loan pile. However, clarity on the road map for conversion is needed, stated senior lender executives.
Its gross credit card debt stood at Rs one.ninety three trillion as of September, of which deferred spectrum payment obligations ended up Rs one.08 trillion, and credit card debt from banks and fiscal institutions of Rs 22,700 crore, according to an investor presentation.
A best govt at a non-public lender stated the funds that was going to spending authorities dues would stay in the publications and should really be utilized for loan payment.
As for offering additional money, bankers stated some of the lender assures would be returned, releasing house for additional publicity. The conversion of dues into fairness is just one particular component and banks will have to evaluate the programs. Vi lifted about Rs 5,000 crore by using quick-expression loans from loan providers, like Point out Bank of India and Union Bank of India.
A senior general public sector lender govt stated this is essentially bridge funding to meet quick liabilities.
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