General Announcement::Update

Issuer & Securities

Issuer/ Manager
GTL INFRASTRUCTURE LIMITED
Securities
GTLINFRAB1 US$80.745M Z221026 - XS1684777912 - 82YB
GTLINB2US$86.417M6.731%B221026 - XS1684779454 - 82ZB
GTLINFRAB3 US$30.078M Z221026 - XS1698001465 - 83AB
Stapled Security
No

Announcement Details

Announcement Title
General Announcement
Date &Time of Broadcast
25-Sep-2018 00:16:40
Status
New
Announcement Sub Title
Update
Announcement Reference
SG180925OTHR4ECI
Submitted By (Co./ Ind. Name)
Nitesh A. Mhatre
Designation
Company Secretary
Description (Please provide a detailed description of the event in the box below)
We wish to inform that Canara Bank has filed an application for initiation of Corporate Insolvency Resolution Process (CIRP) against GTL Infrastructure Limited (Company) allegedly claiming a default of INR 541.49 Crore in aggregate.

The Company denies the existence of the default, in fact as per Canara Bank s own admission in its balance confirmation dated April 9, 2018, the debt of the Company stands reduced to INR 275.48 Crore as on March 31, 2018. The alleged default by Canara Bank is entirely on illegal and unjustifiable grounds, especially since the Company has been regular in payments of its interest and principal instalments since implementation of the Strategic Debt Restructuring Scheme. The Company has initiated appropriate legal proceedings before the relevant judicial authorities to contest the contention of occurrence of a default, which proceedings are currently subjudice.

It is pertinent to note that Canara Bank, for reasons best known to it, is acting contrary to the actions of other secured lenders, neither of whom have raised the similar action and more importantly, 77% of whom have recently completed assignment of their debt in favour of Edelweiss Asset Reconstruction Company, acting in its capacity as a trustee of EARC Trust SC 338 ( EARC Trust ). Canara Bank and certain other banks, despite having participated in the process and unanimously approved the sale to EARC Trust in the consortium meetings, have now refused the assignment in direct contravention of the relevant regulatory guidelines. This illegal action is resulting in delays to the urgently required restructuring of the current debt of the Company.

The Company has initiated appropriate action against Canara Bank and other lenders before the relevant judicial authorities in this regard as well. The Company has also obtained a status quo against the CIRP proceedings from the appropriate judicial forum and as a result the CIRP process has been already stayed pending the outcome of the above proceedings.

You are requested to take note of the same.