GTL (up 11.08% to Rs 36.10) and GTL Infrastructure (up 8.08% to Rs 9.10), surged.

Th BSE Sensex was up 238.16 points or 1.57% to 15,413.24.

The approvals for restructuring loans came in after the promoters agreed to provide personal guarantees worth Rs 2500 crore that would be kept as collateral for the total debt, according to various media reports.

GTL group firms were admitted to a corporate debt restructuring (CDR) plan earlier. According to reports, a master restructuring agreement (MRA) is expected to be signed in the next 12-15 days, and the CDR will be completed in the next 120 days.

GTL Infrastructure, a passive infrastructure firm, has total debt of Rs 10,000 crore and GTL has a total debt of Rs 6000 crore.

GTL's 14 lenders include State Bank of India, ICICI Bank, Punjab National Bank and Standard Chartered. The lenders have agreed to increase the tenure of repayment of debt, and reduce the interest rates.

Also, under the restructuring package, lenders have agreed to transfer ICICI Bank's debt from GTL to the books of Chennai Network Infra (CNIL), a GTL group company.

In return, ICICI Bank will transfer its 29.5% stake in GTL back to its promoters. The promoters will keep this as collateral for the CNIL lenders.

In response to media reports about loan restructuring, GTL announced during trading hours today (21 December 2011) that its good governance practices do not permit commenting on market speculative reports / articles. The company has clarified that as and when it reaches final agreement with lenders, it would disseminate the information to the stock exchanges.