New Delhi: Anil Ambani-led Reliance Communications (RCom) on Monday said the company is not paying interest or principal amount for the time being to any lenders or its bondholders in view of the strategic debt restructuring scheme and consequent standstill period till December 2018.
On 30 October, the company had announced that its lenders would convert part of its debt into equity to the tune of 51 percent stake in RCom. It had also outlined the plan to sell telecom towers and real estate assets to pay off Rs 25,000 crore out of the Rs 45,000 crore debt on its book.
Under the plan, lenders would not have to write off any of their loans, RCom had then stated while outlining a comprehensive debt resolution plan for its domestic and foreign lenders.
In a regulatory filing, RCom said the company is under "standstill period till December 2018" pursuant to the strategic debt restructuring (SDR) guidelines.
The company has also announced various asset sales and a comprehensive debt resolution plan.
"Accordingly, for the time being, no payment of interest and/or principal is being made to any lenders and/or bondholders of RCom," it said.
Sale of DTH business to Veecon Media
Earlier during the day, RCom announced that it has signed an agreement to sell its DTH business to Veecon Media and Television in a bid to cut debt.
Veecon Media & Television will buy 100 percent equity stake in Reliance Big TV Ltd (RBTV), the DTH unit of the Anil Ambani-owned company, for an undisclosed amount, along with all existing trade and contingent liabilities.
The existing DTH license of BIG TV will be renewed and about 500 employees of RBTV will be retained, RCom said in a stock exchange filing.
The deal will help reduce the liability of unsecured creditors, the debt-laden company added.
Last month, RCom reached a new debt repayment plan with lenders, including a pledge to raise up to 170 billion rupees ($2.63 billion) by selling assets.
The company, with 443 billion rupees of net debt as of March, is the most leveraged among listed Indian telecom companies.
(With inputs from agencies)
Published Date: Nov 07, 2017 07:41 am | Updated Date: Nov 07, 2017 07:59 am