Birla -Tata-AT&T kick starts debt restructuring of Rs 2000 crores

Mumbai: Birla-Tata-AT&T Limited (BATL), the new entity emerging from the merger between Birla AT&T Communications Ltd. (BACL) and Tata Cellular Ltd (TCL) has mandated IDBI, Bank of America and Deutsche Bank for restructuring and refinancing outstanding loans of aprox. Rs 2000 crores in respect of 4 existing circles viz. Gujarat, Maharashtra, Andhra Pradesh and Madhya Pradesh. The restructuring will bring all the existing lenders of BACL, TCL and RPG Cellcom into one common facility with substantial savings in interest costs. The restructuring will be concluded within 3 months. It may be recalled that BACL and TCL were the first 2 cellular operators in the country to achieve financial closure in 1997.

The Company has drawn-up a long-term business plan which will be presented to the lenders shortly. The Company expects the full support and consent of all its lenders.

During the last 12 months, Birla-Tata-AT&T subscriber growth has been 130% as compared to the national average of 90% and 73% for the metros. The Company is in an advanced stage of implementing a Rs 900 crores capex for the 4 circles, which as kicked off in May 2000. The Company expects to be cash positive during 2002-2003, consequent to infusion of fresh equity by sponsors, and a very smart and continuing improvement in financial performance.

The Company has recently announced its intention to merge cellular operations with the BPL Group. It has also won the license for the lucrative Delhi circle in the latest round of bidding.