RCom Launches Comprehensive Debt Resolution Plan, Comes Up With New B2B Strategy

Anil Ambani-led Reliance Communications (RCom) on Monday has come up with a comprehensive debt resolution plan to its domestic and foreign Lenders. Under the plan, the telco said that it would 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.

• Make Telecom Talk My Trusted Source
• 
• 

The company said that the “new RCom” would have sustainable and profitable B2B – non-mobile business.RCom’s B2B business portfolio comprises Enterprise, Carrier, Internet Data Centre and global submarine cable network in India and overseas across continents. “These B2B businesses are stable, capital light and have sustained and predictable annuity revenues and profits, with immense growth potential amidst low competitive intensity. New RCom will rank among the Top 3 data players in India,” the company said in a statement.

RCom said that these businesses have no exposure to mobility and consumer business including fiber to the home. They generate equal revenues from domestic and overseas operations.The New RCom will have a sustainable and conservative level of debt of only Rs. 6,000 crore. “Cost of debt will be lower due to the ability to raise debt funds overseas at low cost,” RCom said.

RCom said that it is working closely with SBI Capital Markets Limited, the advisors appointed by the Lenders, to run a competitive process in a transparent manner to monetise the Spectrum, Tower and Fiber, MCNs and prime real estate assets. The Company has valuable spectrum across 800/900/1800/2100 MHz spectrum bands ideally suited for 4G and other evolving technologies.