MTNL defaults on bond repayment due on Aug 24

New Delhi, Aug 14 (PTI) State-run telecom firm MTNL on Thursday said it has again failed to repay bond payment due on August 24.
     The state-owned telecom firm did not disclose the amount.
     MTNL in a regulatory filing that its fourth semi-annual interest of 7.61 per cent MTNL Bond Series VIIIB is due on August 24.
     As per the structured payment mechanism of tri-partite agreement (TPA) signed among MTNL, Department of Telecommunications (DoT) and Beacon Trusteeship Ltd, MTNL has to fund the semi-annual interest into the escrow account maintained in Bank of India with adequate amount 10 days before the due date.
     "In view of above provisions of TPA, it is informed that due to insufficient funds MTNL could not fund the ESCROW Account maintained in Bank of India with the adequate amount," the filing said.
     The debt-ridden telecom firm said all bonds issued by MTNL are sovereign guaranteed bonds by the government.
     "However, in case of any default made by MTNL in payment of principal and interest on the bonds issued by it then sovereign guarantee will be invoked by the debenture trustee and the Government of India is obliged to make the payment to MTNL for the same," the filing said.

(This story has not been edited by THE WEEK and is auto-generated from PTI)