Oger Telecom

Turkey's Akbank, Garanti and İş Bank have applied to the competition authority to take over 55 percent of Türk Telekom after Oger Telecom failed to make three payments on a $4.75 billion loan it secured to acquire a stake in the Turkish fixed-line operator, the competition authority has said.

Multiple buyers are interested in buying a stake in Türk Telekom, Garanti Bank chief executive Ali Fuat Erbil said on Feb. 16 after Oger Telecom failed to make three payments on a $4.75 billion loan it secured to acquire 55 percent stake in the Turkish fixed-line operator.

The three largest creditors of Otaş, a company that was set up by Oger Telecom to acquire a 55 percent stake in Türk Telekom in 2005, have reached an agreement with the Turkish Transport Ministry to acquire a majority stake in the company as they cannot charge their loan receivables, sources have told daily Hürriyet, adding that the lenders and authorities were now working on the legal aspects

Turkey’s Garanti Bank reclassified Oger Telecom’s debt as “closely watched” as of the end of 2017, it said on Jan. 11, keeping the troubled loan on its books after Oger has repeatedly failed to make payments.

Turkey’s banking regulator has assured creditors of Oger Telecom, which is the main shareholder in Türk Telekom, that a $4.75 billion syndicated loan will not go to default and they don’t have to re-classify it as “non-performing,” its head told Reuters on Nov. 16. The move will likely help Oger Telecom avoid costly write-downs.

Turkish Prime Minister Binali Yıldırım said efforts were underway to resolve debt repayment problems at the main shareholder in partly state-owned Türk Telekom, including a formula to "permanently" overcome the difficulties.

The Türk Telekom Group has said that its board of directors decided to appoint Boulos H.B. Doany as new CEO-general manager effective as of Sept. 26, in a written statement. 
The group's former chief, Rami Aslan, resigned from his position after three years of service in late August, yet he continued to serve as CEO at Türk Telekom until a new appointment was made.