(Adds details of debt, comment from statement)
MUMBAI, Dec 31 (Reuters) - India's Tulip Telecom Ltd
, which defaulted on a $140 million convertible bond
redemption in August, said on Monday it is in talks with lenders
to restructure its long-term debt.
Tulip, which designs and manages communication networks of
large enterprises, is negotiating for a moratorium on principal
and interest payments with banks, and extending the repayment
period, which could help ease the debt and interest burden, it
said in a statement.
Tulip had consolidated debt of 30.3 billion rupees ($553
million) at end-September. It was not clear how much of this
amount will be restructured by banks.
"The near-term outlook is mixed, considering liquidity
constraints and a volatile market environment, despite strong
business fundamentals," Chairman H.S. Bedi said in a statement
to stock exchanges.
Tulip joins a long list of Indian companies that have turned
to the corporate debt restructuring mechanism, a voluntary
process whereby creditors approve an easing of repayment terms.
Last month, lenders to Indian wind turbine maker Suzlon
Energy Ltd agreed to restructure about 110 billion
rupees ($1.97 billion) of its debt, sources said.
($1 = 54.81 rupees)
(Reporting by Prashant Mehra; Editing by Sunil Nair)