TMCnet News
Rs215-CRORE LOAN TO LOOP AT STAKE, AXIS BANK TELLS DOT(Indian Business Insight Via Acquire Media NewsEdge) Axis Bank has told the Department of Telecom (DoT) that the Rs215-crore loan to Loop Mobile will be at risk if approval for Loop's deal to sell its assets to Bharti Airtel is not expedited. In Jun 2014, Loop Mobile had entered into an agreement with Bharti Airtel to sell its assets for Rs700 crore. DoT estimates that Loop Mobile, along with its other sister concern, owes it Rs808 crore and, therefore, has held up the clearance related to the deal as the payment has not been made yet to the Government of India. Axis Bank and a consortium of lenders had advanced loans of Rs350 crore to Loop Mobile (India) Limited and the current outstanding is Rs215 crore. Loop Mobile's licences will expire in Nov 2014 after which it will not be able to offer telecom services. The company had to buy spectrum afresh to continue its operations but it did not participate in the auction held in Feb 2014. |