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26 December 2017
 |
| Reliance Communications(The Total Investment & Insurance Solutions) |
Crippled
Reliance Communications (RCom) announced yet another debt revival plan on
Tuesday claiming full debt resolution by March but without involving any
conversion of debt into equity and exiting the SDR framework, apart from coming
on-board of a strategic investor.
The Total Investment & Insurance Solutions
But the company did not name the new
investor.
Announcing the resolution plan, company
chairman Anil Ambani told reporters that the new plan has the support of a
Chinese lender that had dragged it to the NCLT for dues running into USD 1.8
billion, and would see RCom bringing down its mountain of debt by Rs 25,000
crore.
RCom stock rallied 35 percent on the BSE to
Rs 22.01 percent after the announcement. The company has a debt over Rs 44,000
crore.
Debt resolution involves RCom exiting SDR
framework with no conversion of debt into equity and zero write-off by lenders,
Ambani said, adding he expects full closure by March 2018. The Total Investment & Insurance
Solutions
He said the deal involved an eight-stage asset monetisation process under an
oversight committee headed by former RBI deputy governor S S Mundra with
members from Trai and the whole process will be completed in 40 days flat.
The proceeds from asset monetisation will be
used only to pay back the lenders, including China Development Bank with whom
the company sealed an out-of court settlement last evening in Beijing.
On the no hair-cut for lenders, he said the
new plan involves zero equity conversion for lenders and bond holders. The debt
resolution also involves part transfer of spectrum installments, Ambani said.
It can be noted that 31 lenders led by SBI
had met over the weekend.
Late last month RCom had presented what it
called a 'no- loan write-off' plan where lenders are to convert Rs 7,000 crore
of debt into equity.
The 'no-loan write-off' plan also involves
repaying of up to Rs 17,000 crore loans out of proceeds from monetisation of
spectrum, tower and fibre assets.The
Total Investment & Insurance Solutions
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