Debt-oppressed Indian telecoms company Reliance Communications Ltd (RCom) has hinted towards a possibility to sell of telecom infrastructure assets, airwaves and real estate to pay its debt, on February 3, 2019.
A fast-track resolution through India’s National Company Law Tribunal (NCLT) could be the opted course of action for the company.
The company is under a debt to its lenders, to the extent of Rs 380 billion. Debt to domestic lenders stands at 198 billion and that to the foreign lenders amount to Rs 182 billion.
The telecom industry has been facing a cut-throat competition since the entry of Mukesh Ambani led Reliance Jio. RCom was no exception. It had to shut down its wireless business, due to the rising competition and high operational cost.
The Reliance Communications Ltd (RCom) stocks plunged by more than 50% in early trade on Monday, after the company announced its plans for resolution through bankruptcy court tribunal.
Anil Ambani led Reliance Communications has however expressed confidence on Sunday that its substantial unsustainable debt and liabilities would be extinguished under the NCLT process and it would be able to overcome challenges raised by minority lenders.