WorldCall Telecom Limited has availed a syndicated $35 million loan facility for the company’s expansion and availed the financing against corporate guarantee of Oman Telecommunication Company, the parent company, reported The News.
For the purpose, Askari Bank Limited has provided $35 million facility for a term of seven years with a grace period of two years.
Oman Telecommunications Company (Omantel), the parent company of WorldCall, on December 15, 2010 had decided to issue a written guarantee to a third party to provide funding to the company’s subsidiary, WorldCall Telecom Company equivalent to $35 million.
The amount will be used to partly settle urgent dues and the rest to be used for WorldCall expansion.
This fund injection came at a time when Worldcall losses have been increased to Rs. 1.5 Billion in the year 2010 as compared to Rs. 490 million of losses in 2009. Company is facing severe competition for its WLL business, amid lowering GSM call rates.
Very well done Oman Telecom. How you can reduce your losses by putting loan in this company. In my opinion this is poison injection to finish this company before time. As per my knowledge no bank is interested to give them loan because of their default and heavy losses and Oman Tel is again giving guarantee to bank to pay loan. I don’t know who this advice to Omantel. Very strange??????????????
As per financial statement of World Call for the year ended 31 December 2010 (data from world call website) the liabilities are more than US$ 138 million dollars and the value of poison injection is only US$ 35 million. The loss of year 2010 was US$ 17.6 million (before tax). I don’t know how they run this company and how much more losses Omantel will adjust in future. Anyway bad for Pakistan because Omantel is a foreign investor and in future foreign investor lose their interest to invest in Pakistan. In my opinion for downfall of world call is just because of bad management.
U r 100% right. agree wd u.