Banks have reportedly rejected a plan submitted by Saudi Telecom Co. (STC) to resolve a dispute over a late payment on a $4.75 billion loan at STC’s Turkish unit, Oger Telecom (Otas).
The plan was rejected because it involved taking a loss on the loan, Bloomberg has reported, citing sources familiar with the matter.
Saudi Telecom had reportedly planned to lend Otas $160 million. Oger, which owns 55 percent of Turk Telekom, had failed to make a $290 million repayment in September.
A slump in the Turkish lira led to a decline in the dollar value of dividends Otas receives from Turk Telecom. The company had counted on the dividend payout to repay the loan, it was reported.
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