Securing Uninor’s funding remains core issue: Telenor

Posted on January 30, 2012. Filed under: Uncategorized |

Even as Unitech continues to disagree with its joint venture partner Telenor on launching an Rs 8,000 crore rights issue, Telenor has told CNBC-TV18 that the process is underway but declined to comment on the timeline.

Telenor has moved to the Delhi High Court to stop the Unitech Wireless board meet's recording by Unitech. The court had said no to the recording of the board met on Wednesday.

When asked if it still maintains relations with Unitech are not strained. Telenor says, “Despite attempted diversions, the core issue remains that of securing Uninor's funding. We believe both owners must discharge their obligations and put in their own funds in the absence of bank loans to secure Uninor's long term funding. We will not allow Uninor's long-term success to be harmed by the incapability or unwillingness of any owner to do so.”

On the business front, company sources say Uninor is on track to turn EBITDA breakeven by 2013. They say the company will meet target despite unprecedented fall in tariffs.

Telenor says it is satisfied with the progress its Indian JV has made so far.

Unitech had claims too many expenses were being incurred by Uninor.

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