Reliance Communications plunges to record low after approaching bankruptcy court

Reliance Communications (RCom) shares settled at Rs 7.55, down by nearly 35 percent on Monday at close.

The crisis-hit firm said it was moving for bankruptcy protection after its attempts to pare Rs 42,000 crore debt failed despite attempts over the last 18 months to sell assets and negotiate with the lenders.

Shares of Reliance Communications plunged 48 percent on Monday morning as investors reacted to developments around its debt resolution plan. The Nifty 50 was down 0.38 percent at 10,852.65 points, while the Sensex fell 0.37 percent to 36,333.19 points.

"RCom board of directors decides upon implementation of debt resolution plans through NCLT framework", the company said in a statement Friday. Computation of total realizable value is hard as there is lot of real estate in the asset mix.

More news: Instagram’s most famous egg ‘hatches’ following Super Bowl

Debt-laden Reliance Communications Ltd (RCom) plunged by more than half to its record low in early trade on Monday, after the company said it will seek a fast-track resolution through the bankruptcy court National Company Law Tribunal to resolve its indebtedness. The company is opting for debt resolution process to overcome the challenge of getting 100 percent lenders or creditors approval required for taking a decision around asset sale which has been hampering the process asset monetization, reported PTI, citing sources.

RCom was expecting to realise Rs 975 crore from sale of spectrum to Jio which it promised to use for paying dues of Rs 550 crore to Ericsson and Rs 230 crore to settle dues of minority stakeholder Reliance Infratel. "These issues inter alia resulted in numerous legal issues at High Courts, TDSAT and the Hon'ble Supreme Court, which frustrated the existing plan and can now be addressed/resolved under the NCLT process", said the spokesperson. Jio, Brookfield and the Department of Telecommunications could not be reached for comment.

The board of directors of RCom Friday reviewed the progress of the company's debt resolution plans since the invocation of strategic debt resolution on June 2, 2017.

The company's current debt to lenders stands at 380 billion rupees ($5.32 billion) of which it owes 198 billion to local lenders and 182 billion rupees to foreign lenders, a spokesman for RCom told Reuters.

Related News:

04 February 2019

Gisele's Daughter Cheers on ''Papai'' Tom Brady Before Super Bowl
Brady hoisted his daughter up in a post-game interview as she cheered him on while wearing a bedazzled Brady jersey. She wore pigtail braids, and her father's jersey hung down to her knees like a dress.

04 February 2019

Groundhogs split on spring
This winter, which across Ontario has seen either snowstorms or frigid Arctic conditions has taken a toll on many people. Ontario Premier Doug Ford was among the officials on stage when the announcement was made.

04 February 2019

West Ham boss Manuel Pellegrini calls for 'good performance' against Liverpool
The Premier League leaders can restore the five-pointpoint gap over Manchester City on Monday when they visit struggling West Ham. We always play the league and the Champions League is then a little sweet in between and we will go for it with all we have.
04 February 2019

‘Young & The Restless’ Star Kristoff St. John Dies At 52
Besides Mia , Kristoff leaves behind his second ex-wife, Allana Nadal, and his two surviving daughter, Paris and Lola. It is citing sources that say there is no sign of foul play, and alcohol may have played a factor in St.

04 February 2019

Captain Marvel Super Bowl Ad Teases Marvel's Next Avenger Brie Larson
Marvel fans will know that at the end of Avengers: Infinity War , the MCU calls upon the help of Captain Marvel to fight Thanos . Endgame finally puts us out of our misery (or adds to it) on April 26.

04 February 2019

Fulham snap up Lazar Markovic from Liverpool
Liverpool also announced the deal on their website via a short statement, wishing Markovic all the best at his new club. Lazar Markovic has left Liverpool to join Fulham .
04 February 2019

Eden Hazard sends message to Gonzalo Higuain after Chelsea FC win
He, according to chelseafc.com, said, 'I know very well when Higuain arrived he wasn't at the top of his physical condition. If the team like in the first 25, 30 minutes played very well and we have movements without the ball, it's easier I think.

04 February 2019

Diego Simeone rates Alvaro Morata's Atletico Madrid debut
It took a spectacular save from Jan Oblak to prevent Zouhair Feddal heading Betis in front midway through the first half. Barca lead the standings on 50 points after 22 games, Atletico are second with 44 while third-placed Real Madrid.

04 February 2019

PSG win sets up Lyon for Barcelona - Aulas
We have hurt Lyon, who let the storm pass before starting to hit top gear". After half-time, we put them back in the game.
04 February 2019

Adam Levine likened to an 'awkward stripper' during Super Bowl performance
So Maroon 5 , Travis Scott and Big Boi (one half of hip-hop duo Outkast) will all likely receive small potatoes for performing . Let's hope you weren't banking on Maroon 5 to salvage a surprisingly boring Super Bowl (or is it a Punt Bowl?).

04 February 2019

Ryanair falls to loss in third quarter as fares fall
In the quarter to 31 December 2018 passenger numbers grew eight per cent to 32.7m and revenue grew nine per cent to €1.53bn. The airline today also announced a restructuring of the group which will have four airline subsidiaries.

04 February 2019

European Union refuses to accept tech solution to Irish backstop — EU’s BREXIT STONEWALL
This is understood to have included discussions between Scotland Yard and regional police forces. May is set to return to Brussels this month in an attempt to try and change minds in the EU.