Vodafone-Idea, which is facing a severe cash crunch, may get a big relief soon. Oaktree Capital may lend money to Vodafone Idea against its 11.5% stake in Indus tower, but at a higher interest rate expected at around 20%.
Oaktree Capital Group LLC, is one of the world’s largest distressed debt investors, and is aggressively bidding in India, has agreed to pay funds to Vodafone Idea against the potential realisation from the stake sale in advance, sources say.
Vodafone Idea is India's second-largest telecom company that needs funds to pay its AGR due on or before March 17. Considering the developments of the merger of Bharti Infratel and Indus Towers in final stages, Vodafone is expected to receive Rs 4500 crore from its stake sale in Bharti Infratel and Indus Infrastructure deal. Most of the work on the merger expect some approvals. As when the merger is complete Oaktree capital will take its payment from the deal.
The total AGR dues of Voda Idea are close to Rs 53,000 crore, out of which Rs 3500 crore has been paid. The telco has also been requesting for relief from the Indian government.
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