Mumbai: State-run Canara Bank has moved taken telecom infrastructure player GTL group to the National Company Law Tribunal (NCLT) after the company defaulted on its debt repayment.Also Read - Alert! IFSC Codes of THESE Banks Changed, Update Your Details NOW to Make Online Payments
While GTL has defaulted on Rs 459 crore loans from the bank, GTL Infrastructure owes Rs 541 crore to the lender. Also Read - Jet Airways May Fly Again in 6 Months With NCLT's Nod to Resolution Plan | All You Need to Know
“Canara Bank has filed an application for initiation of corporate insolvency resolution process against GTL and GTL Infrastructure,” the companies said in separate filings to exchanges. Also Read - ATTENTION Canara Bank Customers: IFSC Code and Cheque Book of THESE Customers To Change
GTL, however, claimed that it is a victim of consolidation in the telecom sector. The last of such circumstances occurred in the last 12 months which saw the unprecedented shut down of three major operators –Aircel, Tata Teleservices and Reliance Communications–as well as the forced consolidation of Vodafone and Idea and Telenor and Bharti Airtel,” GTL said in the statement.
These events, which have been entirely beyond the control of the management, have had a material and adverse impact on the operations and prospects of the company, the company said.
As of March 2018, GTL had debt of Rs 6,502.44 crore while that of GTL Infrastructure had Rs 4,956.4 crore.
GTL shares were trading down around 2 per cent at Rs 5.79 on the BSE at 1300 hrs, while GTL Infra was trading down at 5 per cent at Rs 1.35.