Sam George reveals AT’s debt portfolio hits $200 million

The Minister of Communication, Digital Technology, and Innovation, Samuel Nartey George, has revealed that AT’s debt portfolio currently stands at $200 million following a debt restructuring arrangement.

Addressing the press in Accra on Wednesday, April 9, he disclosed that the company continues to face financial challenges, with monthly operating losses amounting to GHS20 million.

According to him, there should be urgency in addressing the situation, stating that steps are being taken to negotiate haircuts with creditors to ensure AT’s viability.

The Minister criticised the previous government’s acquisition of Airtel Tigo, which was rebranded as AT, for a reported purchase price of $1.

He described the decision as “ill-informed and reckless,” highlighting that the company had a debt portfolio of $400 million at the time of purchase and lacked sufficient revenue to cover its overhead costs.

Sam George also pointed out that the core and dealing platforms had reached the end of their lifecycle, with no significant investments made by the former operators of Tigo in the preceding five years.

“The previous government acquired Airtel Tigo and rebranded it as AT with a reported purchase of $1. Nothing could have been more disingenuous and unpatriotic. When the company was bought, its debt portfolio stood at $ 400 million, and its revenues could not meet its monthly overheads.

“The core and dealing platforms have reached the end of life, and both Bharti and Milicom, which operated Tigo, had failed to make any meaningful investments in both companies over the preceding five years

“The decision to step in at the time can best be described as ill-informed and reckless. It was an abdication of responsibility by the then administration and minister to the best interest of Ghana.”

“…Today, after a debt restructuring arrangement, the debt portfolio at AT sits at about $ 200 million, rising every month as the company makes a monthly operating loss of GHS20 million.

“The bleeding needs to be thrashed, and urgent steps are underway to engage the company’s creditors in negotiating haircuts to ensure the company’s viability,” Sam George stated.

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