RCom jumps after unveiling new debt repayment plan

Reliance Communications surged 11.15% to Rs 17.45 at 10:00 IST on BSE after the company unveiled new debt repayment plan.

The announcement was made after market hours yesterday, 30 October 2017.

Meanwhile, the S&P BSE Sensex was down 4.84 points or 0.01% at 33,261.32.

On the BSE, 51.78 lakh shares were traded on the counter so far as against the average daily volumes of 34.83 lakh shares in the past two weeks. The stock had hit a high of Rs 18.20 and a low of Rs 16.50 so far during the day.

Reliance Communications (RCom) yesterday, 30 October 2017 made a comprehensive debt resolution plan to its domestic and foreign lenders. RCom's debt resolution plan envisages no loan write-off by the lenders.

RCom will pay off up to Rs 17000 crore of its debt, out of the proceeds of monetization of spectrum, towers and fiber and MCN (Media Convergence Nodes) assets. The company will pay additional Rs 10000 crore of its debt, out of the proceeds of sales and commercial development of DAKC and other prime real estate assets across 8-metros.

RCom said it is working closely with SBI Capital Markets, 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.

The company said debt of Rs 7000 crore is proposed to be converted into 51% of the company's equity, as per the strategic debt restructuring (SDR) guidelines of the Reserve Bank of India (RBI).

RCom will have conservative level of debt of only Rs 6000 crore after the completion of the new repayment plan, the company said.

The company is under a standstill period (for interest and principal repayments) till December 2018 and expects to complete the SDR process as per applicable RBI guidelines.

On a consolidated basis, RCom reported net loss of Rs 1221 crore in Q1 June 2017 compared with net profit of Rs 54 crore in Q1 June 2016. Net sales fell 33.6% to Rs 3494 crore in Q1 June 2017 over Q1 June 2016.

RCom is an integrated telecommunications service provider.

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