THE ETISALAT LOAN FIASCO: A CONSORTIUM HANDCUFFED?
The recent debt crisis involving Etisalat Nigeria has been widely and extensively documented. This piece seeks to analyse the options…
The recent debt crisis involving Etisalat Nigeria has been widely and extensively documented. This piece seeks to analyse the options available (and those not available) to the consortium of banks to whom the debt in question is owed.
It is important to note at the outset that despite its high profile nature, there are conflicting reports regarding certain aspects of the story. For example, there are differing views on the exact ownership structure of Etisalat Nigeria; the actual assets pledged to secure the loan; and the current outstanding balance of the debt. As such, the facts relied upon in this analysis are based on the author's best judgement in light of all available information at the time of writing.
An understanding of the shareholding structure of Etisalat Nigeria, the reported terms of the loan agreement, and the regulatory framework of the telecommunications sector are all crucial in order to identify the options available to the MNO’s creditors.
A brief overview of the fac…