The empowered group of the corporate debt restructuring (CDR) Cell has approved Tulip Telecom’s proposal for debt restructuring.

A consortium of 13 banks and financial institutions which had provided loans to Tulip Telecom, have approved the company’s CDR package. The package, which covers debt of about Rs 30 billion includes a 30 month moratorium on principal and 18month moratorium on interest. As per the approval guidelines, the promoters of Tulip Telecom have already infused Rs 0.6 billion towards debt restructuring.

In 2007, Tulip Telecom had issued foreign currency convertible bonds (FCCBs) worth $140 million, which came up for redemption in August 2012. However, the company has been unable to repay the FCCBs and has been in talks with the bondholders to arrive at a resolution.