Reliance Communications Limited announced its exit from RBI’s SDR framework, with ZERO equity conversion and ZERO loan write-offs for lenders and bond holders. Upon completion of all transactions as announced, the balance debt in RCOM is expected to be ~ Rs.6,000 crore only, representing reduction of over 85% of total debt.
Anil D. Ambani, Chairman, Reliance Communications Ltd., said:“I am delighted with the comprehensive resolution for the benefit of all stakeholders of RCOM.”
RCOM has worked closely with all Lenders and SBI Capital Markets Limited, the advisors appointed by the Lenders, to run a competitive process in a transparent manner to monetize its valuable assets.
Lenders have received the final binding bids and all transactions are expected to be closed in a phased manner between January and March 2018.
The monetisation of these assets alone will lead to reduction of RCOM’s debt by ~ Rs. 25,000 crore, through prepayment of loans, transfer of DoT’s deferred spectrum payment liabilities, etc.
RCOM’s continuing operations will comprise stable and profitable B2B focused businesses, includingIndian and Global Enterprise, Internet Data Centres and the largest private submarine cable network inthe world. These B2B businesses are stable, capital light and have sustained and predictable annuityrevenues and profits, with immense growth potential amidst relatively low competitive intensity.
RCOM will receive equity infusion from global strategic partners for further debt reduction, consequent upon a stake sale process already underway, and being conducted by Credit Suisse. RCOM’s balance debt is expected to be a highly conservative ~ Rs. 6,000 crore only,upon completion of all transactions.
The stock surged 31% at Rs. 21.33.
The stock has hit a high of Rs.23 and a low of Rs. 16.50.