Tulip Telecom has locked in 5% upper circuit of Rs 34.20 on the NSE after the company said its board approved long term debt-restructuring plans.
“The board of directors of the company at its meeting held on December 31, 2012, have approved the Corporate Debt Restructuring (CDR) System for restructuring of its debts including the draft of the Debtors Creditors Agreement to be executed for implementation CDR System,” Tulip Telecom said in a statement.
Meanwhile, the enterprise data service provider has approached its lenders to restructure its debt with longer maturity periods, including a moratorium on principal and interest payments, the Business Standard report suggests.
The debt restructuring is targeted to ensure better liquidity and enable the company to focus and strengthen its core operations, added report.
The stock opened at Rs 33.90 and has seen a combined around 81,790 shares changing hands on the counter in opening deals. There are pending buy orders for 289,689 shares on the NSE and BSE.