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Over the past couple of years, the debt-ridden company has been running into losses mainly on huge short term debts.

Tulip Telecom collected debts to invest in data centres and fulfil its working capital requirements, but this failed to bring significant revenues for company.

Due to repeated failures in payments, credit rating agency Fitch, on August 2012, downgraded Tulip Telecom from ‘junk’ to ‘default’ status.

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