RCom shares surge on extension to service debt
RCom will also present plans for sustainable long-term servicing of its remaining debt of Rs 20,000 crore.
By ETMarkets.com | Updated:
Shares of Reliance Communications advanced on Monday after Anil Ambani on Friday sought to reassure investors that the debt- laden telecom firm has been given a reprieve of seven months to service its debt.
Following the development, the scrip surged 5.32 per cent to hit an intraday high of Rs 21.75 on BSE. However, the scrip retreated as the session progressed. It eventually closed the day 0.73 per cent higher at Rs 20.80.
In a filing to NSE, the company said there would be a standstill on the company’s debt servicing obligations for seven months till the end of December, 2017, which will reduce its debt by a substantial amount of Rs 25,000 crore, or 60 per cent.
RCom will also present plans for sustainable long-term servicing of its remaining debt of Rs 20,000 crore.
In the event the company is unable to complete the deals within the December deadline, lenders may exercise their right to convert their debt to equity as per the strategic debt restructuring (SDR) rules, Reliance Communications said.
On a consolidated basis, Reliance Communications reported a net loss of Rs 948 crore for the quarter ended March 31 against net profit of Rs 79 crore reported for the corresponding period last year.
Net sales declined 24.11 per cent to Rs 4,312 crore in Q4 of 2017 over Q4 2016.
Following the development, the scrip surged 5.32 per cent to hit an intraday high of Rs 21.75 on BSE. However, the scrip retreated as the session progressed. It eventually closed the day 0.73 per cent higher at Rs 20.80.
In a filing to NSE, the company said there would be a standstill on the company’s debt servicing obligations for seven months till the end of December, 2017, which will reduce its debt by a substantial amount of Rs 25,000 crore, or 60 per cent.
RCom will also present plans for sustainable long-term servicing of its remaining debt of Rs 20,000 crore.
In the event the company is unable to complete the deals within the December deadline, lenders may exercise their right to convert their debt to equity as per the strategic debt restructuring (SDR) rules, Reliance Communications said.
On a consolidated basis, Reliance Communications reported a net loss of Rs 948 crore for the quarter ended March 31 against net profit of Rs 79 crore reported for the corresponding period last year.
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Net sales declined 24.11 per cent to Rs 4,312 crore in Q4 of 2017 over Q4 2016.
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