Malaysia’s Maxis is reported to have pumped an additional Rs 6,000 crore (US$980 million) into its Indian subsidiary, Aircel as “quasi-equity” to help the company fund bank interest payments.
Maxis currently owns 74% of the Indian company.
According to a report by the Business Standard newspaper, the funds were provided after banks asked Aircel to bring more money into the company before a four-year moratorium on payment of the loan’s principal amount could be given.
The funding was required as well due to Aircel reaching close to the limit of its borrowing levels as the firm spends heavily on restructuring to cut its long term losses. In September this year, Aircel achieved an operating break-even for the first time.
Maxis has not confirmed the investment to the Mayalsian stock market at the time of writing.