Mahanagar Telephone Nigam Limited — Others, 06-05-2025: Rumour Verification - Regulation 30(11)

MTNL has announced a board meeting to address reports of default on interest payments for Rs 6,100 crore sovereign guarantee-backed bonds. The company was unable to fund the escrow account for the semi-annual interest due to a lack of funds. However, under the agreement with the Government of India and the Debenture Trustee, the government is responsible for covering any such default by funding the escrow account before payment deadlines. This mechanism safeguards bondholders amid MTNL’s liquidity challenges.