Tulip Tele plans long term debt restructuring, stock up 5%

Shares of Tulip Telecom were locked at 5 percent upper circuit on Tuesday as the company has planned long term debt-restructuring.

Enterprise data services provider has initiated discussions with its senior lenders to restructure its debt with longer maturity periods under the corporate debt restructuring programmes, including a moratorium on principal and interest payments.

"The debt-restructuring exercise will ensure better liquidity and enable the company to focus and strengthen its core operations," the company said in a release.

H S Bedi, chairman and managing director said, "The near term outlook is mixed, considering liquidity constraints and a volatile market environment, despite strong business fundamentals."

Tulip has an outstanding obligation of USD 140 million on the existing foreign currency convertible bonds (FCCBs), with a face value of USD 97 million.

At 09:43 hours IST, the stock rose 4.89 percent to Rs 34.30 on the Bombay Stock Exchange. There were pending buy orders of 106,190 shares, with no sellers available.