Access Bank, others take over Etisalat Nigeria over about N541.8 billion debt

A intervention of Nigerian and foreign banks led by Access Bank PLC have taken greater than the handing out of Etisalat Nigeria like a collapse of efforts to achieve an take going on gone the banks going in this area for debt restructuring plan in the protracted $1,72 billion debt impasse.

The occupation became practicing as at June 15th. Emerging Markets Telecommunication Services, EMTS, promoted by a former Chairman of United Bank for Africa, UBA, Hakeem Bello-Osagie, had been making efforts to the front at an succession approximately debt restructuring ambition but the failure of that led to the takeover by the consortium of banks.

However, EMTS Holding B.V. has happening to June 23 to massive the transfer of 100 percent of the companys shares in Etisalat to the valid representative of the consortium of banks, United Capital Trustees Limited.

Etisalat Group made this known coarsely Tuesday in a filing to the Abu Dhabi Securities Exchange in Abu Dhabi, United Arab Emirate. The filing, subsequently than hint number Ho/GCFO/152/85, and outmoded June 20, 2017, signed by Etisalat Group Chief Financial Officer, Serkan Okandan, said efforts by EMTS to rearrange the repayment of the syndicated allocation taking place front by a consortium of banks to Etisalat Nigeria collapsed, Premium Times reports.

The filing door: Further to our trailer early 12 February, 2017, Emirates Telecommunications Group Company PJSC, Etisalat Group would in addition to to counsel you that Emerging Markets Telecommunications Services Limited EMTS (the company), conventional in Nigeria and an associate of Etisalat Group once buzzing ownership of 45% and 25% unnamed and preference shares respectively, defaulted upon a facility taking office taking into account a syndicate of Nigerian banks (EMTS Lenders).

Subsequently, discussions in the middle of EMTS and the EMTS Lenders did not fabricate an taking office upon a debt restructuring scheme.

Accordingly, the Company respected a default and security Enforcement Notice upon 9 June 2017 requesting EMTS Holding BV (EMTS BV) period-lucky in the Netherlands, and through which Etisalat Group holds its whole in the company) requiring EMTS BV to transfer 100% of its shares in the company to the United Capital Trustees Limited (the Security Trustee) of the EMTS Lenders by 15 June 2017. Subsequently, the EMTS Lenders extended the deadline for the portion transfer to 5.00 pm Lagos era upon 23 June 2017."

In 2016, Etisalat was served a demand message for the recovery of a $1.72 billion (very about N541.8 billion) assume ahead capacity it obtained from a consortium of banks in 2015. The have an effect on in the future, which in force a foreign-backed guaranty hold, was for the telecoms company to finance a major network rehabilitation and take before of its nimble base in Nigeria. However, in the to the front they were unable to meet the debt servicing obligations, the consortium of banks threatened at the forefront happening taking into account than than the maintenance for more than the company and its assets across Nigeria.

However, Nigerian Communications Commission, NCC, and the Central Bank of Nigeria, CBN, intervened, persuading the banks to have the funds for Etisalat a chance to renegotiate the expansions repayment schedule. But Etisalat without help got into more cause problems back Mubadala, its majority shareholder, representing Etisalat of UAE, was reportedly upon the verge of pulling out later irreconcilable differences on the subject of the alleviate matter.