Telenor settles US$1.77 billion of Uninor’s debts

Telenor has settled loans worth Rs 9,809 crore (US$1.77 billion) held by its Indian affiliate, Uninor, the company has announced.

The settlement comes after lenders issued default notices.

Uninor said that it has been operating on short-term loans after its minority shareholder blocked efforts by the majority shareholder to increase funding for the company. Although the shareholders were not named, it is obvious that they are referring to the dispute between Telenor and Unitech.

The short-term loans had been secured by Telenor.

Uninor is currently seeking to sell off its assets before the network faces closure next month after its GSM licences were cancelled. Telenor has said that it would buy the assets if bidders do not emerge, and is expected to use them to set up a fresh company with another Indian investor.