Three large banks are set to take a majority stake in the Turkish incumbent Türk Telekom.
Hürriyet reports that the banks – Adbank, Garanti Bank and Is Bank – are the largest creditors of Otas, a company that was set up by Oger Telecom to acquire a 55% stake in Türk Telekom in 2005.
They offered loans to Otas in 2013 but have not received any repayment over the last one and a half years.
In total, Otas received $4.7 billion, with Adbank providing $1.5 billion, Garanti Bank $1 billion, Is Bank $500 million and 26 other banks the remainder.
According to sources familiar with the matter, the creditors have now reached an agreement with the Transport Ministry, which conducts talks on behalf of the government. However, the process is still in its initial stages.
Hürriyet notes that the default by Otas is attributable to the problems faced by the Hariri family, the owner of Oger Telecom.
The Turkish government has failed to find a solution, while third parties such as Saudi Telecom have expressed an interest in buying the shares if the debts were written off.