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Robbing Peter to pay Paul? Kotak as Vi plans to settle dues via share issue
short by Ashley Paul / on Friday, 14 June, 2024
Uday Kotak said issuing equity to creditors to repay debt is a model for financially distressed companies. This comes after Vodafone Idea decided to settle Nokia and Ericsson's dues via ₹2,458-crore preferential share issue. Without mentioning Vodafone Idea and referring to proverb 'Robbing Peter to pay Paul', Kotak said, "If stock is well-traded, creditor can sell...and get paid by investors."