Abu Dhabi-based Telecoms Company, Etisalat, on Tuesday said it has been ordered to transfer its 45% interest in Etisalat Nigeria to a loan trustee after debt restructuring talks failed.

The Nigerian unit said it had been in talks with lenders to restructure a $1.2billion loan after missing a payment deadline but the discussion had not yielded any agreement. Etisalat added that the syndicate had set a June 23rd deadline for the transfer of ownership of its shares. According to the parent company, its financial exposure to Etisalat Nigeria was linked to operational services valued at $52 million and talks were ongoing with lenders over the use of the Etisalat brand.

Etisalat Nigeria in 2013, obtained a seven-year loan facility from 13 local banks to refinance a $650 million loan as well as the expansion of its network but the company had missed the payment due to a dollar shortfall in Nigeria’s financial system. This was caused by low oil prices and economic recession.

Anita Fatunji