Modification of Vodafone Idea’s quotas will free up money to pay creditors

Modification of Vodafone Idea's quotas will free up money to pay creditors

A top executive at a private bank said the money that was going towards paying government dues would stay in the books and should be used for loan payment.

Vodafone Idea’s (Vi’s) choice for change of levy to government into value is helpful for lenders as its liabilities will lessen and more cash will be accessible to support the tremendous loan pile. In any case, clarity on the road map for transformation is vital, said senior bank chiefs. Its gross debt remained at Rs 1.93 trillion as of September, of which conceded spectrum payment obligations were Rs 1.08 trillion, and debt from banks and financial institutions of Rs 22,700 crore, as indicated by an investor presentation.

As for giving additional funds, bankers said some of the bank guarantees would be returned, releasing space for additional exposure. The conversion of dues into equity is just one element and banks will have to assess the plans. Vi raised about Rs 5,000 crore via short-term loans from lenders, including State Bank of India and Union Bank of India.

A senior public sector bank executive said this is essentially bridge funding to meet immediate liabilities.

Disclaimer: If you need to edit or update this news from compsmag then kindly contact us Learn more

For Latest News Follow us on Google News


Latest Headlines
  • Show all
  • Trending News
  • Popular By week
New home COVID-19 test insurance coverage page launched
New home COVID-19 test insurance coverage page launched
Individuals can also find testing sites through an online search tool, and they now have access to free at-home test that will be sent directly from the ...
Shreveport Councilman Asks State to Investigate City Finance Department |  News
Shreveport Councilman Asks State to Investigate City Finance Department | News
Nickelson included with his letter the statement Hebert made Monday during a news conference.  “Last month, the city’s interim chief financial officer ...
Britannia's 3rd Quarter Results |  Net Profit drops 19% to Rs 371 Crore due to higher costs and weak demand
Britannia’s 3rd Quarter Results | Net Profit drops 19% to Rs 371 Crore due to higher costs and weak demand
“We delivered a high single digit volume growth significantly ahead of the market and a resilient double-digit top-line growth of 13%, driven by superlative ...
Sensata Technologies Reports First Quarter 2021 Financial Results
Automaker Stellantis signals better business performance in China
Our Standards: The Thomson Reuters Trust Principles. Register Register now for FREE unlimited access to Reuters.com Reporting by Sudip Kar-Gupta Editing by ...
Stockton wants to rebrand itself as a ‘business-friendly city’
Stockton wants to rebrand itself as a ‘business-friendly city’
The plan focuses on rebranding the city, supporting small businesses and attracting new business to the area.  “Telling our story, our rich history here in the ...
Record 14.5 million Americans signed up for health coverage in 2022 under the Affordable Care Act
Record 14.5 million Americans signed up for health coverage in 2022 under the Affordable Care Act
With the end of open enrollment in most states, people still looking for coverage will need a specific reason, such as losing a job or a change in family ...
Loyalsock reviews health plan |  News, sports, jobs
Loyalsock reviews health plan | News, sports, jobs
Under the revised plan, masking students and staff will be optional. However, masks will continue to be required on school buses. “I strongly support all ...
UniCredit authorizes voluntary departures of 1,200 employees with Italian banking unions
UniCredit authorizes voluntary departures of 1,200 employees with Italian banking unions
Unions had said the plan envisaged 950 job cuts in Italy through voluntary and early retirements, plus 475 new hires. Italian bank UniCredit CRDI.MI has ...
Fed says bond maturity runoff will be key tool to sink balance sheet
NCLAT asks CoC to consider order for 63 moons at DHFL Resolution Concoct
However, in its resolution plan, the CoC had overlooked this provision to the benefit of the Piramal Group. In a significant lift to 63 moons technologies, ...
Google is working to make gaming Chromebooks a reality
Google is working to make gaming Chromebooks a reality
Should that be the case, gamer-focused laptops are the most likely scenario by far, given RGB keyboards are almost exclusively found on gaming hardware. The ...
Show next
We will be happy to hear your thoughts

Leave a reply

Compsmag - Latest News In Tech and Business
Logo