Banks Are Poised to Take a Majority Stake in Turk Telekom - Bloomberg

Banks Are Poised to Take a Majority Stake in Turk Telekom - Bloomberg:

Creditors that provided a $4.75 billion loan to the majority owner of Turkey’s largest phone operator are in the final stages of setting up a special purpose vehicle to take over the company as they seek to resolve the country’s biggest default, people with knowledge of the matter said.

About 90 percent of banks have formally approved the formation of an SPV that would assume control of Ojer Telekomunikasyon AS, or Otas, said the people, asking not to be identified because the talks are private. The remaining 10 percent have informally agreed and have until Thursday to officially approve, they said.

Banks will get a share in the SPV relative to their contribution to the Otas loan, the people said. International lenders are forming a separate holding company for tax reasons that will hold a stake in the SPV, one of the people said. Otas borrowed the money in 2013 to refinance its acquisition of a 55 percent stake in Turk Telekomunikasyon AS.