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Orascom gets waiver under $2.5bn credit deal
22 January 2010
Orascom’s lenders have granted the company a waiver of a credit agreement in relation to a $600 million tax claim from the Algerian government
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Orascom
Algeria
tax
Egypt
The majority senior secured lenders of Orascom Telecom have granted the Egyptian telco a waiver under a $2.5 billion credit agreement relating to its Algerian taxes. The waiver is specific to the Algerian tax claim against Orascom Telecom Algeria in respect to the years 2004 to 2007.
Orascom Telecom is facing a $600 million tax claim and penalties for the years 2004-2007. Orascom Telecom Algeria was, however, exempted from tax till the middle of 2007.
The waiver depends on the successful completion of a forthcoming capital increase of Orascom Telecom with a minimum take up of $700 million out of the $800 million proposed rights issue, to strengthen its balance sheet.
The rights issue seeks to ensure liquidity, “including financing needs for the group when there is no immediate resolution of the tax dispute in Algeria”, the telco stated. GTB