Saudi Telecom resolves $1.2 bln loan issue with creditors -sources
DUBAI, Sept 12
DUBAI, Sept 12 (Reuters) - Saudi Telecom (STC) has resolved a tussle with creditors over a $1.2 billion loan tied to its Indonesian unit, Axis Telekom, by offering to repay about 90 percent of the loan mainly through a sale of the arm, sources familiar with the matter said.
Creditors, including HSBC Holdings, Deutsche Bank and Citigroup Inc, have been battling with STC to avoid potential losses of up to $600 million after the state-owned firm asked banks to restructure the loan, to reflect the value of the business.
STC, which owns 84 percent of Axis, is in advanced negotiations with Axis' rival XL Axiata on a potential sale of the unit and proceeds from the sale will be largely used to repay the loan, the sources said, speaking on condition of anonymity as the matter is not public.
The sources declined to reveal the terms of the Axis deal, citing strict confidentiality surrounding the terms and the sensitivity of the matter. STC spokesmen in Riyadh did not reply to several emails and phone calls seeking comment. HSBC, Deutsche and Citigroup declined to comment. (Additional reporting by Matt Smith in Dubai and Janeman Latul in Jakarta; Editing by David Evans)
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