Tulip Telecom announces Corporate Debt Restructuring (CDR) proposal

Tulip Telecom, India's enterprise data services provider today announced the formal approval of its proposal for the restructuring of its debt by the empowered group of the Corporate Debt Restructuring (CDR) Cell.

The company's domestic lenders, a consortium of 13 banks and financial institutions, approved the company's CDR package. The package includes a 30 month moratorium on principal and 18 month moratorium on interest.

The promoters of Tulip Telecom have already infused the required promoter's contribution of Rs 60 crores as required by the approval, which shall be converted into equity.

With regards to an update on the company's FCCB redemption, Tulip's ongoing engagement with bond holders continues to be both constructive and progressive, and it expects to reach an acceptable solution for all stakeholders at the earliest possible date.

Lt Col (Retd) HS Bedi, chairman and managing director, Tulip Telecom said, "Tulip has built a strong infrastructure for its enterprise data business and this approval shows the long term commercial viability of our business. I am confident that this CDR package will enable the company to quickly return to a position of strength. We have been able to retain all our marquee customers over the past year and intend to quickly turn our business around with the strong support of our customers, employees, vendors and partners."