GTL, GTL Infra drop up to 5% on bankruptcy action

NEW DELHI: Shares of GTL and its unit GTL Infrastructure ran into rough weather on Tuesday as Canara Bank filed for insolvency proceedings against the two listed companies.

Shares of GTL fell 2.73 per cent to hit a low of Rs 5.71 on the BSE early today. GTL Infra shares, on the other hand, declined 5 per cent to Rs 1.35.

This will mark another battle for dues in a debt-laden industry.

In a regulatory filing to the BSE, GTL said: “Canara Bank has filed an application for initiation of Corporate Insolvency Resolution Process (CIRP) against GTL Limited allegedly claiming a default...”

The company termed the action of Canara Bank as against the interest of all stakeholders, including other lenders and minority public shareholders, which is value erosive.

In a separate stock exchange notice, telecom tower company GTL Infrastructure denied the bank’s allegations and said its debt as of March end has come down to Rs 275.48 crore.