The all-cash deal, valued at about ₹1,200 crore, involves a transfer of stressed debt between asset reconstruction platforms and investors. It was closed in March. The exposure dates back to 2018, when Edelweiss ARC, in partnership with Oaktree and other investors, had acquired nearly 90% of GTL Infra’s loans, then valued at around ₹4,000 crore.
The telecom tower company had defaulted on debt exceeding ₹11,000 crore, triggering multiple restructuring efforts over the years.
People familiar with the latest transaction said Edelweiss had put the exposure on the block as its fund lifecycle neared maturity, prompting a takeout by Omkara.
“This is a 100% cash deal between ARCs. Edelweiss exited and we acquired the exposure,” an executive at one of the firms said on condition of anonymity.
Investors are betting on improved recovery prospects this time. “The underlying business is more or less stable now. The towers are operational, and that improves the chances of recovery,” the person said.
Omkara is understood to be targeting an exit over the next two years, either through asset sales or a negotiated settlement. “The idea is to close the account in about two years-through sale of assets or other recovery mechanisms,” the person added. Omkara and Edelweiss ARC spokespersons did not respond to requests for comment until press time Sunday.
In 2018, after a steep revenue and Ebitda decline following the exit of key clients including Aircel, RCom and Tata Teleservices, GTL Infrastructure sought to deleverage, with lenders assigning 79.34% of its ₹3,226-crore debt to Edelweiss ARC. The firm submitted multiple restructuring proposals from April 2018 onward, expecting a swift resolution, but lenders did not act on these plans and some retained their exposure.
In November 2022, the National Company Law Tribunal (NCLT) rejected a plea by Canara Bank to initiate insolvency proceedings, ruling that the company remained a viable going concern and did not meet the threshold for admission under the bankruptcy code.
Source link
#Omkara #Oaktree #pay #crore #buy #GTL #debt #Edelweiss
