Demiroren's debt restructuring talks now cover $2 bln -sources

Hurriyet Gazetecilik ve Matbaacilik

04/10/2021 15:49

By Ebru Tuncay
    ISTANBUL, Oct 4 (Reuters) - Demiroren Holding, Turkey's
largest media owner, is in talks with banks to restructure some
$2 billion in loans, sources familiar with the talks said, more
than previously reported as the focus has expanded to debt used
to acquire media, lottery and energy assets, 
    The sources, who requested anonymity, told Reuters the talks
could expand further to cover even more debt, taking into
account interest. 
    Demiroren Holding did not immediately respond to a request
for comment on the restructuring talks.
    Pro-government Demiroren in 2018 paid $916 million for
Hurriyet newspaper, broadcaster CNN Turk and other assets from
Dogan Holding. The deal shifted the mainstream media
overwhelmingly behind President Tayyip Erdogan. 
    Reuters has previously reported that Demiroren was in
discussions to restructure up to $1.4 billion in loans.
 urn:newsml:reuters.com:*:nL8N2QN2MY 
    It is in talks with Ziraat Bank to restructure $800 million,
the amount of debt it took on to finance purchases in the media
sector, three banking sources said. 
    The rest of the debt - around $1.2 billion to acquire
lottery services and energy ventures - is being negotiated with
eight or nine banks, including state lenders, the sources said.
    Ziraat Bank declined to comment.
    One of the sources said the holding company "has difficulty
making money from its core businesses and this makes the
restructuring difficult." 
    Among the restructuring options under consideration are
extending terms, adding a balloon payment, a "hair cut", or
switching debt from dollars to Turkish lira, a second banking
source said. 
    A balloon payment could possibly bring about an asset sale
but "nothing is clear yet, this person added. 
    
    

 (Reporting by Ebru Tuncay; Editing by Jonathan Spicer and Jane
Merriman)
 ((Ebru.Tuncay@thomsonreuters.com; +90 212 350 7069; Reuters
Messaging: ebru.tuncay.reuters.com@reuters.net))