Deals
Otas Lenders Are Said to Seek State Control of Turk Telekom
- Banks are said to prefer state option over Saudi Telecom offer
- Otas is said likely to miss two more loan repayments
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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.