Banks likely to clear Aircel’s R18,500-cr loan plea soon

The telecom company,owned by Malaysia’s Maxis and the Reddys of Apollo Hospitals,has a debt of around Rs 24,000 crore as per industry estimates.

A large part of it was created in acquiring 3G and 4G spectrum. Of this Rs 13,500 crore was spent on acquiring spectrum — Rs 10,000 crore was on auction of 3G

airwaves and the rest Rs 3,500 crore for broadband wireless access.

Sources said that the proposal to evergreen some of the loans to Aircel would mean the banks are confident the company can service the interest cost of the loan,showing the sector has begun to repair the damage to its balance sheet.

“Around Rs 14,500 crore could be provided to cover for the existing debt and the rest would be provided as loans to fund future expansion plans,” the source added. State Bank of India is the lead member of the 15-member consortium with an exposure of close to Rs 10,000 crore in the company. Delhi-based Punjab National Bank,for instance,has an exposure of Rs 3,000 crore in the company. Aircel wants to raise a fresh Rs 3,600 crore from the company to square off its debt and the rest for future investments. An e-mail sent to Aircel’s spokesperson did not elicit any response.

Aircel operates in all 22 telecom circles in the country. The company posted a loss of Rs 724 crore on an income of Rs 3,898 crore during the first half of the 2012 calendar year.

To use fund to clear debt

* Aircel has sought around

Rs 14,500 crore to refinance a part of its debt while another

Rs 4,000 crore would be used to fund capital investment

* The company has a debt of around Rs 24,000 crore

* SBI is the lead member of the consortium with an exposure of Rs 10,000 crore in the firm