Indian cellco Loop Mobile has been told by its debt-holders to sell off assets in order to make repayments, the Business Standard writes. The Mumbai-based operator, which lost its licences to operate nationwide (under the Loop Telecom moniker) in the mass cancellation of concessions in February 2012, is expected to raise around INR1.5 billion (USD24.48 million) through the sale of its towers and real estate assets. INR1.2 billion of the proceeds would go towards paying the instalments to its creditors.
An unnamed spokesperson for the cellco was quoted as saying: ‘It is a sale and lease-back proposal which is under consideration and discussion at the present juncture. The said real estate properties are currently hypothecated to the consortium of bankers and, therefore, the proceeds would go to reduce bank outstandings, improving Loop Mobile’s debt servicing ability. It would have no impact on the net assets of the company.’