Siti Networks in discussion with bankers for restructuring of debt obligations; stock freezes on lower circuit

Siti Networks has defaulted a principal amount of Rs64.3cr and interest of Rs13.2cr against bankers.

Nov 02, 2020 11:11 IST India Infoline News Service

Essel Group-backed Siti Networks has announced default in repayment of principal and interest amount on loans from major private banks.

The multi-system operator has defaulted a principal amount of Rs64.3cr and interest of Rs13.2cr against bankers like HDFC Limited, IDBI Bank, SCB Bank, RBL, Axis Bank, Kotak Bank, ABFL and Indusind bank.

The date of default was September 30, 2020, said the company.

As per the data given by Siti Networks, the company's term loan outstanding amounts to Rs199cr from HDFC Bank, Rs139cr from IndusInd Bank, Rs177cr from Axis Bank, Rs128cr from Aditya Birla Finance Limited, Rs70cr from SCB Bank, Rs53cr from RBL Bank, Rs15cr from IDBI Bank and Rs3cr from Kotak Bank.

Notably, there is no overdue amount on loans from IndusInd.

The loan tenures from 5-7 years with an interest rate ranging from 9.5-13%.

Thereby, Siti Networks total amount of outstanding borrowings from Banks stood at Rs910cr.

Further, the company said, "We wish to further inform you that the Company is in discussions with its bankers for restructuring of its debt obligations."

On Monday, Siti Networks stock freezes on the lower circuit of Rs0.63 per piece on Sensex down 4.55%. 

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