A conflict regarding loan with creditors have been recently resolved by Saudi Telecom related to its Indonesian subsidiary Axis Telekom. About 90% of the USD1.2 billion was offered to be paid through the sale of the unit, according to sources familiar with the transaction.
The creditors are Citigroup Inc, Deutsche Bank and HSBC Holdings and there had been ongoing issues with Saudi Telecom in its bid to avoid possible losses that may reach USD600 million. This comes after the state backed telecommunications firm had sought banks to restructure the existing loan to properly reflect the value of the business.
Saudi Telecom owns 84% of Axis Telekom. The Saudi firm is in deep discussion with XL Axiata on a possible sale of Axis. The proceeds from the sale would be utilized to repay the loan. The terms of the possible sale have not been revealed, as the information was deemed confidential.
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