 "No role in banks' selling loans to Edelweiss ARC: GTL Infrastructure")
GTL Infrastructure has stated that it played no role in the assignment of the company's debt to Edelweiss Asset Reconstruction Company (EARC) in 2018.
In response to the Central Bureau of Investigation filing a first information report, GTL Infrastructure affirmed that it had voluntarily submitted all necessary documents related to the assignment of debt and strategic debt restructuring processes as required by the authorities.
The company wished to make clear that it was not involved in its then-lenders' decision to assign debt to EARC. "The company continues to operate in the normal course of business and does not see any material impact on the operations of the company," it noted in a filing to the stock exchange. Furthermore, GTL Infrastructure's auditors have concluded in their reports that there have been no instances of any fraud or diversion of funds.
Since the fiscal year 2010-11, GTL Infrastructure has made aggregate repayments to its lenders, including conversion of debt into equity, in excess of Rs 19,000 crore. The company reiterated that it continues to operate in the normal course of business, foresees no material impact on its operations, and will cooperate with authorities.
Despite facing bankruptcy and the closure of almost a dozen telecom operators, which led to losses of over Rs 17,000 crore since 2012 following the Supreme Court's decision to quash 2G licences, GTL Infrastructure has repaid over Rs 18,500 crore through the Corporate Debt Restructuring (CDR), Strategic Debt Restructuring (SDR), and the Asset Reconstruction Company (ARC) process.
A banking analyst commented on the situation, noting that the decision of banks not to sell their equity or to sell their debt is purely at the discretion of the banks themselves, and no company management has a say in the matter.