Reliance Communications (RCom) announced yet another debt revival plan today claiming full debt resolution by March but without involving any conversion of debt into equity and exiting the SDR framework, apart from coming on-board of a strategic investor.
Anil Ambani today claimed his beleaguered Reliance Communications has negotiated a new deal with the lenders under which nearly Rs 40,000 crore (million) will be raised through asset sales, averting an imminent takeover by the 35 local and foreign banks.
Announcing the resolution plan, company Chairman Anil Ambani told reporters that the new plan has the support of a Chinese lender that had dragged it to the National Company Law Tribunal (NCLT) for dues running into $1.8 billion, and would see RCom bringing down its mountain of debt by Rs. 25,000 crore (million).
This loan, involves sale of RCom's residual spectrum, towers and realty assets, including the 125-acre DAKC, which is the operational headquarters of the group, and also a possible minority stake sale to a strategic investor, Ambani told the media.
"Today, the fact of the matter is, we've had an understanding and an arrangement with all the lenders to ensure a substantial prepayment, the residual debt to be duly addressed and a viable business model for a new RCom with no risks to the banks by way of conversion or write-offs," Ambani, said after convincing China Development Bank.
He said the deal involved an eight-stage asset monetisation process under an oversight committee headed by former RBI deputy governor S S Mundra with members from Trai and the whole process will be completed in 40 days flat.
The plan is part of a "moral finance" drive undertaken by the company which will help protect Reliance and the Ambani family goodwill in the market, he claimed.
On the no hair-cut for lenders, he said the new plan involves zero equity conversion for lenders and bond holders.
Ambani said RCom conducted a long meeting with the lenders recently where the plan was discussed.
Accompanied by wife Tina and son Anmol, Ambani, who got control over the telecom assets following a very bitter feud with his elder brother Mukesh following their father Dhirubhai's death in 2002, said it has been a daunting process in which he learnt a lot.
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