Business

3 banks ready to take over Etisalat for defaulting N542 bn loan

Published

9 years ago

March 8, 2017

By Adedeji Adeyemi Fakorede

A consortium of local banks may assume the management of Etisalat Nigeria over unpaid loans extended to the telco about two years ago.

National Daily gathered that the development is a fallout of the difficulty being faced by the telco in settling the debt.

Already, the telco has approached the Central Bank of Nigeria (CBN) and the Nigerian Communications Commission (NCC) for their intervention to prevent the takeover of the telco.

Investigation also revealed that the CBN has already arranged a meeting with executives of the affected banks on the issue.

The banks’ chiefs at a meeting with CBN three days ago did not commit to the apex bank’s intervention.

The bank executives are now said to be waiting until March 7, when the “cure period” (a period of time when a party that breaches a contract can remedy the breach without penalty) will end.

It was learnt that the creditor banks plan to approach the telecom industry regulator, the Nigerian Communication Commission (NCC) “to update the Executive Vice Chairman, Prof Umar Danbatta, of the situation before any overture is made to possible buyers” for the
company.

But a source close to the telco told National Daily that there is no planned takeover, insisting that its management was intact, and working round the clock to offer quality services to its over 20 million customers across the country.

While confirming the Etisalat’s indebtedness, a Senior Executive of the company said the economic headwind had made the repayment a little difficult.

“Yes we raised funds from a consortium of banks about two years ago in the country. We have been making conscious efforts to repay the debts and we have indeed repaid part of it. We are engaging with the banks, negotiating with them with a view to coming out with a method of repaying the loan,” the source said.