Tata Teleservices lenders to recast loans, take haircut

Bankers said many telecom sector entities were facing financial stress

Lenders to debt-ridden Tata Teleservices are exploring a loan-restructuring package with some haircut in order to avoid the account being classified as a non-performing asset. 

Bankers said many telecom sector entities, including two companies of the Tata group, were facing financial stress and since options were limited, the lenders would look for a loan recast. As part of the recast package, banks may have to forgo some income but it is too early to estimate the haircut lenders are willing to take. The Tata group operates its mobile telecommunications business through Tata Teleservices Ltd (TTSL) and TTSL's associate company, Tata