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Oaktree, Omkara ARC acquire GTL Infra’s debt for Rs.1,200-Cr from Edelweiss

Economic Times  

Global investor Oaktree Capital Management, in partnership with Omkara Asset Reconstruction Company, has acquired GTL Infrastructure's debt from Edelweiss Asset Reconstruction Company in an all-cash secondary market transaction valued at INR 1,200 crore. The deal was finalized in March.GTL Infrastructure, a telecom tower company, had previously defaulted on debt exceeding INR 11,000 crore, leading to multiple restructuring efforts over the years. In 2018, Edelweiss ARC, alongside Oaktree and other investors, had acquired approximately 90% of GTL Infra's loans, then valued at about INR 4,000 crore. Edelweiss decided to sell its exposure as its fund lifecycle approached maturity.Omkara aims to exit this investment within the next two years, either through asset sales or a negotiated settlement. Investors involved in the current transaction anticipate improved recovery prospects for GTL Infrastructure, citing the stability of its underlying business and operational towers. In November 2022, the National Company Law Tribunal (NCLT) had rejected a plea by Canara Bank to initiate insolvency proceedings against the company.

In Oct-18, Edelweiss Asset Reconstruction Company had teamed up with Oaktree Capital to buy the INR 4,000 crore loan which telecom tower company GTL Infrastructure owed a consortium of lenders. Edelweiss, along with Oaktree and other US investors like Bank of America-Merrill Lynch, bought about 90% of the total loans due to lenders paying INR 2,400 crore in cash which represents 60% of the value of the loan. About 15% of the investment amount was put in by Edelweiss.For FY25, GTL Infrastructure had reported about INR 1,344 Cr in Operating Income and about INR 875 Cr in Net Loss.