RCom plans to reduce its debt by INR 25000 crore or 60% by monetisation of its telco and spectrum assets.
Anil Ambani-led Reliance Communications Limited (RCom) on Monday sold its fiber and related infrastructure assets to Mukesh Ambani-led Reliance Jio Infocomm Limited (RJio) for INR 3,000 crore.
“With the successful completion of the fiber monetisation transaction, 178,000 km of fiber stand transferred to RJio,” said a company statement.
Last week, RCom sold its Media Convergence Nodes (MCNs) and related infrastructure assets, worth INR 2,000 crore, to Jio. On Friday, RCom secured the approval of its overseas bondholders to ease the company’s debt burden, a move that will help the debt-laden firm avert bankruptcy.
RCom had defaulted on $300 million bonds last year and the vote was crucial for the telecom major as settling the matter was a precondition for the company to reorganise its larger local debt of more than INR 42,000 crore.
In February, the Reserve Bank of India mandated banks to identify projects with even a day’s default as stressed assets and conclude the resolution proceedings in 180 days. The circular came into effect on March 1 and the 180-day deadline concludes on August 27.
The company has to reach an agreement with all its creditors by August 27 or face insolvency proceedings.
It plans to reduce its debt by INR 25,000 crore or 60% by monetisation of its telco and spectrum assets. RCom shares on BSE were trading marginally down at 19.07 in a firm Mumbai market on Monday.
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