Avijit Bajpai
Tata Communications has approached the government (which holds a 26% partnership in erstwhile VSNL) with a proposal to introduce some changes in shareholders’ agreements. This is in wake of the need to collect funds as the company is confronting liquidity issues.
In this regard, the company has asked DoT (Department of Telecom) to look into relaxing of the cap on the total indebtedness in relation to the Networth.
It is believed that the company communicated to DoT about the likelihood of breach of covenants on long-term loans in Jan-09. Also, it was informed that the next financial year will pose major hurdles in financial terms, in case no additional non-debt funds are made available.
For this, the company reached out to its stakeholders, TATA sons and the Government itself to have permission for coming out with a rights issue of Rs.1000 crore, besides the debt-raising option.
However, TCL’s spokesperson denied any such liquidity shrinking and said that the financial standing is pretty stable.
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