Telenor settles USD1.77bn loans to ‘keep Uninor in business’

Norwegian telecoms group Telenor has directly settled INR98 billion (USD1.77 billion) bank debts at its 67%-owned Indian mobile subsidiary Unitech Wireless (Uninor), an action it claims was necessary for the cellco to continue its operations, Dow Jones Newswires reports. Uninor had failed to extend some of its loans from Indian and international banks, which were fully guaranteed by Telenor, and a statement claimed that Uninor’s operations had been relying on short-term loans because one of its shareholders had ‘refused to fund the company through its own funds and has also actively worked to stop the majority shareholder from doing so.’ In February 2012, following the Indian Supreme Court’s mass cancellation of Indian 2G licences including Uninor’s, Telenor announced that it saw ‘no future’ in its partnership with Unitech, and would be looking for another partner in the country

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OVETEL Telenor settles USD1.77bn loans to ‘keep Uninor in business’