Tata TeleservicesBSE -1.55 % Maharashtra (TTML) said that it could not meet its loan obligations and has sought a waiver of its payment dues from its lenders.
In a regulatory filing on Tuesday, TTML, the listed arm of telecom firm Tata Teleservices (TTSL ) said that its lenders are considering the waiver.
‘The accumulated losses of the company (TTML) as of September 30, 3027, have exceeded its paid-up capital and reserves. The company has incurred net loss during the quarter and half year ended September 30, 2017, and the company’s current liabilities have exceeded its current assets as at that date,” said the listed arm of Tata Teleservices (TTSL) in its filing.
“The company has not been able to satisfy the financial covenants (due for testing as at March 31, 2017) stated in the agreements with the lenders of long term rupee borrowings and lenders of External Commercial Borrowings (ECB) which could result in loans aggregating Rs 1602.86 crore being recalled by the lenders,” said TTML.
TTML posted a total comprehensive loss of Rs 8194.67 crore in the September ended quarter compared to loss of Rs 452.82 crore in the same period last year. Its revenues dropped by about 29% to Rs 516.52 crore for the September end quarter when compared on a year on year basis.
The company has applied for the waiver of the testing of the financial covenants, which is under consideration by these lenders, the statement added.
The operator said that its promoters (Tata Sons) plan to infuse funds in TTML, directly or indirectly through TTSL which, along with the proceeds of monetisation of certain assets will be used to meet financial obligations as and when they fall due.
According to earlier ET reports, Tata Sons has committed to infuse in FY18, Rs 20,000 crore into Tata Tele to largely repay a part of its term loans as well as to meet its other liabilities.
TTSL which has a loan of about Rs 30,000 crore . last month announced the sale of its consumer mobile business to Bharti AirtelBSE -0.66 % in cash free-debt free deal.
