Overseas bondholders approve plan to ease RCom’s debt burden
Reliance Communications has been working against the clock to reach agreements with all its creditors by 27 August or face insolvency proceedings
Mumbai: Anil Ambani-led Reliance Communications Ltd clinched the approval of its overseas bondholders to ease the carrier’s debt burden, putting the company a step closer to averting bankruptcy. The operator, which defaulted last year on a $300-million bond, got 83% of bondholders to approve the plan, the company said in an exchange filing.
“Reliance Communications bondholders approved the tender and exchange offer of $300 million bonds with an overwhelming majority of over 83%, at their meeting held today, 24 August 2018, in London,” RCom said in a statement. Following the offer, bondholders will receive cash proceeds of up to $118 million. “Bondholders will also get $55 million bonds to be issued by Global Cloud Xchange Ltd (holding company of GCX), a foreign subsidiary of RCom,” the statement added. The Global Cloud Xchange bonds will be unsecured and will carry a coupon of 0.1% with maturity of four years, it added
The vote was crucial for Ambani because settling the matter was a precondition for RCom to reorganise its larger local debt. The company has been working against the clock to reach agreements with all its creditors by 27 August or face insolvency proceedings.
RCom is also in the midst of completing its sale of airwaves, towers and fiber to Mukesh Ambani-led Reliance Jio. The brothers wrapped up a smaller deal involving transmission nodes, Rs 2,000 crore on Thursday.
(With PTI inputs)
(Reliance Group companies have sued HT Media Ltd, Mint’s publisher, and nine others in Bombay high court over a 2 October 2014 front-page story that they have disputed. HT Media is contesting the case.)