Bank consortium may reject Etisalat takeover for loan repayment

Following failure of Etisalat Nigeria to restructure it’s loans amounting to N541 billion, there are rising concerns that the commercial banks involved may opt for cash repayment rather than complete take over of the communication company.
Etisalat Vice President, Regulatory and Corporate Affairs, Ibrahim Dikko had recently stated that the 13 consortium of lenders will engage in share restructuring of the communication firm.
This was mainly to enable the banks take full control of the firm.
However, fresh investigation has shown that the consortium of creditor banks are insisting that they are not interested in taking over Etisalat but they are more interested in their money.
Though, they had earlier considered bringing on-board new equity partners or going into a merger with other industry players.
According to a source, “managing the firm is not really sustainable. The entire banking sector is grappling to survive in this crucial time of recession so getting the money bank will be the least they can do.
“Mind you, beyond Etisalat, there are other communication companies owing some of us. So we can start taking over all the firms.”
Etisalat had secured the huge loan from 13 banks in 2013 which include Guaranty Trust Bank (GTB), Acces Bank, Zenith Bank, United Bank for Africa (UBA), Fidelity, First Bank among others.
According to reports, GTB is being owed N42b, Acecss Bank N40b and Fidelity Bank N17.5b.
Even though the Central Bank of Nigeria, Nigerian Communications Commission (NCC) assured Nigerians by intervening in the situation, their inputs however seemed futile.
Source: globalvillagextra
Send your news stories to and via WhatsApp on +233 244244807
Follow News Ghana on Google News