RCom Exits SDR Framework; Says Asset Monetisation to Reduce Debt by 85%

Reliance Communications (RCom)said that it has exited Reserve Bank of India’s strategic debt restructuring (SDR) framework with zero equity conversion and zero loan write-offs for lenders and bondholders, and it is along with its lenders is now monetising valuable assets which will help it to reduce debt to Rs 6000 crore or 85% of the total debt.
RCom
“I am delighted with the comprehensive resolution for the benefit of all stakeholders of RCom. What we have achieved, in the face of extraordinary challenges, is truly historic and unprecedented in Indian corporate history,” Anil D. Ambani, Chairman, Reliance Communications Ltd, said in a statement.

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The ailing telco is working 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 monetise its valuable assets. The telco is monetising 122.4 MHz of 4G Spectrum in the 800/900/1800/2100 MHz bands, over 43,000 towers and 1,78,000 RKM of fiber with pan-India footprint.

The telco is also monetising 248 Media convergence nodes, covering over 5 million Sqft, used for hosting telecom infrastructure, and prime real estate located in New Delhi, Chennai, Kolkata, Jigni and Tirupati.

“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 telco said.

The monetisation process is being carried out under the oversight of an independent high powered Bid Evaluation Committee, comprising of eminent experts from banking, telecom and law. The monetisation of assets has elicited very strong response both from India and abroad.