RCom, controlled by billionaire Anil Ambani, will retain debt of Rs 6,000 crore after the completion of the new repayment plan, the company said in a statement
The debt-laden Reliance Communications Ltd (RCom) on Monday unveiled a new debt repayment plan to its domestic and foreign lenders, saying it will not involve any loan write-off by the lenders.
The plan includes a pledge to raise up to Rs 17,000 crore ($2.62 billion) through the sale of assets such as mobile towers. It would also repay lenders an additional Rs10,000 crore through the sale of commercial real estate, and convert about Rs 7,000 crore of the debt to 51% of the company's equity as per RBI's strategic debt restructuring (SDR) guidelines.
RCom, controlled by billionaire Anil Ambani, will retain debt of Rs 6,000 crore after the completion of the new repayment plan, the company said in a statement.
"RCom's debt resolution plan envisages no loan write-off by the lenders. RCom will pay off up to Rs 17,000 crore of its debt, out of the proceeds of monetisation of spectrum, towers and fibre and Media Convergence Nodes assets," it said.
"RCom will pay additional Rs 10,000 crore of its debt, out of the proceeds of sales and commercial development of Dhirubhai Ambani Knowledge City and other prime real estate assets."
The company 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 fibre, 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. While the company will continue with its 4G-focused strategy, it plans to monetise its holding through trading and sharing arrangements," it said.
The company will also monetise its extensive tower and fibre portfolio comprising of 43,000 plus towers and over 1,78,000 route kilometre of intercity and intra-city fibre, it said.
Its monetisation plan also includes its 248 MCN properties located across the country and prime real estate assets located at New Delhi, Mumbai, Chennai, Hyderabad and Kolkata.
The company's transformation journey is focused on viable, sustainable and profitable B2B businesses with a strong domestic and global footprint. "RCom's B2B business portfolio comprises Enterprise, Carrier, Internet Data Centre and global submarine cable network in India and overseas across continents. New RCom will rank among the Top 3 data players in India," it claimed.
(With inputs from agencies)
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