VIL board to discuss Rs 1,600 crore debenture issue for ATC on Jan 31

New Delhi: Debt-ridden Vodafone Idea’s board will meet on Tuesday to discuss a proposal to issue Rs 1,600 crore debentures to mobile tower vendor ATC Telecom Infrastructure.

Vodafone Idea (VIL) and ATC had agreed to extend the last date to issue optionally convertible debentures (OCD) till February 28 after the shareholder’s approval to issue the debentures lapsed in December.

“We wish to inform you that a meeting of the Board of Directors of the Company is scheduled to be held on Tuesday, 31st January 2023, in relation to the said preferential issue of OCDs to ATC and to convene the Extraordinary General Meeting of the Company to seek approval of the shareholders in this regard,” VIL said in a regulatory filing.

The shareholders’ nod to issue OCD within 15 days of approval of the proposal had lapsed in the absence of any response from the government on the conversion of interest dues into equity.

On November 21, shareholders of debt-ridden Vodafone Idea (VIL) approved issuing OCDs worth Rs 1,600 crore to ATC Telecom Infrastructure on a preferential basis to settle dues of the infrastructure vendor by converting the due amount into equity, if the amount remained unpaid in 18 months.

The OCD issue for ATC was subject to certain conditions, including the approval of the government.

VIL was of the view that by the time of issuing OCDs, the government would have converted the interest from deferment of adjusted gross revenue and spectrum dues owed by the company into equity.