Otas Lenders Are Said to Seek State Control of Turk Telekom - Bloomberg

Otas Lenders Are Said to Seek State Control of Turk Telekom - Bloomberg:

"Banks that provided a $4.75 billion loan to the owner of Turk Telekomunikasyon AS see a government takeover of the operator’s management as the best way of resolving Turkey’s largest debt default, according to three people familiar with the matter. The stock rose. Lenders favor this outcome to another proposal of a cash injection into Otas, which owns 55 percent of Turk Telekom and has missed two payments on the loan it took out in 2013, the people said, asking not to be identified because negotiations are ongoing. Turkey’s Treasury, which owns 25 percent in Ankara-based Turk Telekom, has the right to dismiss existing board members if Otas cannot agree to a restructuring plan with the banks. Having Turk Telekom’s management under the single control of Treasury may facilitate an ownership change in the country’s largest telecommunications company and make it easier to handle any potential talks with future investors over the stake held by Otas, the people said. The government can also extend Turk Telekom’s concession to keep operating beyond the contract’s 2026 expiry, clearing the way for a longer repayment period should the loan be restructured, they said. "



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