Vodafone Idea's validity period for OCD issuance to ATC Telecom lapses

Debt-ridden Vodafone Idea's proposal to issue Rs 1,600-crore debentures to mobile tower vendor ATC Telecom Infrastructure has lapsed in absence of any response from the government on the conversion of interest dues into equity, the telecom operator said on Tuesday.

Last month, shareholders of debt-ridden Vodafone Idea (VIL) approved issuing optionally convertible debentures (OCD) worth Rs 1,600 crore to ATC Telecom Infrastructure on a preferential basis to settle dues of the infrastructure vendor by converting the due amount into equity, if the amount remained unpaid in 18 months.

The OCD issue for ATC was subject to certain conditions including the approval of the government.

VIL was of the view that by the time of issuing OCDs, the government would have converted the interest from deferment of adjusted gross revenue and spectrum dues owed by the company into equity.

"As the Company has not received any communication from the Government of India on such conversion, the issuance of