The banks that Etisalat Nigeria is owing have neither accepted nor rejected the plan to convert part of the over $1 billion loan into 5% equity.

This is contrary to the claims that the banks have rejected the proposal.

The telecom service provider said in a statement on Monday that it had not received any formal communication from the lenders regarding the proposal to convert part of the over $1bn loan facility into five per cent equity in the company.

“Whilst we are aware of recent news reports stating that the offer has been rejected by the banks, we cannot confirm this as true as no formal communication has been received from the banks regarding the proposal.

“Etisalat has so far held robust discussions with the lenders in good faith, and we hope that all areas of discord will be resolved in due course. Indeed, the current economic challenges have occasioned untold hardship on the telecom industry, thus requiring a major shift in position by all affected parties.

“We continue to explore all available options to pull through this phase,” the statement said.

The company said that it is still in discussions with its lenders regarding the existing obligations under the syndicated loan agreement signed in 2013.