Lenders to take 51% in RCOM

Lenders to take 51% in RCOM

 

Reliance Communications Limited (RCOM) made a comprehensive debt resolution plan to its domestic and foreign Lenders. Comprehensive

RCom’s debt resolution plan envisages no loan write-off by the lenders. RCom will pay off up to Rs. 17,000 crore of its debt, out of the proceeds of monetization of Spectrum, Towers and Fiber and MCN (Media Convergence Nodes) assets.

RCom will pay additional Rs. 10,000 Crore of its debt, out of the proceeds of sales and commercial development of DAKC and other prime real estate assets across 8-metros. The New RCom will have sustainable and profitable B2B – non mobile business.

RCom is working closely with SBI Capital Markets Limited, the
advisors appointed by the Lenders, to run a competitive process in a transparent manner to monetize the Spectrum, Tower and Fiber, MCNs and prime real estate assets.

Debt of Rs. 7,000 crore is proposed to be converted into 51% of the Company’s equity, as per the SDR guidelines of the Reserve Bank of India. Shareholders of the Company at the Annual General Meeting held on September 26, 2017 have already approved issuance of equity shares to lenders by conversion of loans.