RCom says not making any payment to lenders for the time being
Reliance Communications (RCom) says it’s currently under ‘standstill period’ with invocation of strategic debt restructuring scheme and working on asset monetisation
New Delhi: Reliance Communications (RCom) said on Wednesday that it is not making any payment to lenders or bond- holders for the time being as it is under ‘standstill period’ with invocation of strategic debt restructuring scheme and working on asset monetisation.
In a regulatory filing, the telecom operator said that is in standstill period till December 2018 pursuant to the SDR (strategic debt restructuring) guidelines. “The Company has also announced various asset sales and a comprehensive debt resolution plan, as advised per our earlier letter dated 30th October 2017. Accordingly, for the time being, no payment of interest and/or principal is being made to any lenders and/or bondholders of RCom,” the Anil Ambani led firm said in a BSE filing.
The filing was in response to query of the stock exchange on report around RCom defaulting on payment of a US dollar bond. On 30 October, RCom said that it plans to pay debt of 27,000 crore through asset monetisation, Rs7,000 crore through equities and carry forward debt of Rs6,000 crore to new business. The company has said that it plans to implement its debt resolution proposal within the standstill period.
On Wednesday, shares of Reliance Communications plummeted 12.12% to Rs10.15 on BSE while the benchmark Sensex shed 0.55% to end the day at 32,760.44 points.
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.
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