Vodafone India seeking debt revamp: Sources

Bloomberg October 30 | Updated on October 30, 2019

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Vodafone, reeling under $14 billion of net debt, mounting losses and dwindling subscribers, has approached creditors for better payment terms to revive the sinking carrier, people with direct knowledge of the matter said.

Vodafone Idea Ltd. has warned lenders that it won’t be able to honour its commitments for long under current conditions, the people said, asking not to be named as the discussions are private. One of its requests was a temporary halt to loan payments, although no formal proposal has been made, two of the people said.

A spokesman for Vodafone Idea said the company hasn’t asked lenders to rework payment terms and the carrier continues to pay all its debts as and when they fall due. “The financial stress in the telecom sector is well acknowledged and all telecom operators have asked for requisite help in reducing it,” the firm said in the statement.

The distress deepened last week after the nation’s top court ordered Vodafone to pay about $4 billion in past dues, dealing a fresh blow to the struggling business. Vodafone Idea has been losing subscribers and reporting losses every quarter since they announced their merger in 2017.

Published on October 30, 2019

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