Tulip Telecom locked in upper circuit on debt recast talks

NEW DELHI: Tulip Telecom Ltd surged nearly 5 per cent to Rs 34.30 on Tuesday and was locked in its upper circuit limit, after the company said that it was in talks with lenders to restructure the long-term debt.

At 10:40 am, Tulip Telecom was locked in upper circuit at Rs 34.30, up 4.89 per cent on the Bombay Stock Exchange.

"Tulip, which designs and manages communication networks of large enterprises, is negotiating for a moratorium on principal and interest payments with banks, and extending the repayment period," Reuters reported.

"Tulip had consolidated debt of Rs 3030 crore at end-September. It was not clear how much of this amount will be restructured by banks," added the report.

Tulip joins a long list of Indian companies that have turned to the corporate debt restructuring mechanism, a voluntary process whereby creditors approve an easing of repayment terms.