RCom gets bondholders’ nod for asset sale to Reliance Jio
Reliance Communications hopes to cut its debt by Rs39,000 crore from Rs45,000 crore with its asset sale to Reliance Jio
Mumbai: Anil Ambani-led Reliance Communications Ltd (RCom) on Wednesday said that the company’s bondholders have approved its asset sale plans, including its decision to sell its assets to Reliance Jio Infocomm Ltd and sale of other real estate.
RCom said its bond holders have also accepted part pre-payment through bonds that were due to mature in 2020.
“The holders of the company’s $300 million bonds, at their meeting held on 20 March 2018 in London, have approved with overwhelming majority the sale of assets to Reliance Jio Infocomm Limited and also monetization of other real estate assets,” RCom said in a statement.
“The bondholders also approved release of their security on the company’s assets and to accept part prepayment of their outstanding bonds,” the statement added.
Anil Ambani had in December said that his company had agreed to a new debt resolution plan that would see RCom sell its assets, including spectrum, tower, optical fibre network and other wireless infrastructure, but did not entail lenders and bond-holders writing off dues or converting it into equity. Through this process, RCom hoped to cut its debt by Rs39,000 crore from the Rs45,000 crore it owed lenders.
On Wednesday, RCom shares rose 8.86%, or Rs2.05, to Rs25.20 on BSE while the benchmark Sensex gained 0.42%, or 139.42 points, to end the day at 33,136.18.
Reliance Group companies have sued HT Media Ltd, Mint’s publisher, and nine others in the Bombay high court over a 2 October 2014 front-page story that they have disputed. HT Media is contesting the case.
Editor's Picks »
- India’s wealth creators amidst a dull equity market
- As India embraces e-commerce, it’s advantage surface express transporters
- Sadbhav Engineering: Investors want more than a strong order book
- Why Trump need not worry about quarterly reporting of earnings
- MakeMyTrip’s attempts to juggle between growth and profitability