Turkish PM: Efforts underway to solve Türk Telekom shareholder debt problem

ANKARA-Reuters

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Turkish Prime Minister Binali Yıldırım said efforts were underway to resolve debt repayment problems at the main shareholder in partly state-owned Türk Telekom, including a formula to “permanently” overcome the difficulties.

“There are efforts to overcome this problem ... Aside from the restructuring the debt of the company, a different formula is also in the works. Permanently overcoming the company’s debt problem is also being worked on,” Yıldırım told Reuters on the sidelines of a reception in Ankara late on Oct. 29.

Türk Telekom’s majority shareholder Oger Telecom, which is 55 percent owned by Saudi Oger, missed an interest payment of close to $300 million on a $4.75 billion loan at the end of September, banking and other sources have said.

Türk Telekom said this month it did not expect reports related to one of its shareholders to have any impact on its daily operations, commitments or liabilities. It also said its financial agreements did not include cross default provisions in relation to shareholders missing debt repayments.