Shares in Reliance Communications jumped as much as 16 per cent on Tuesday after the troubled Indian telecoms company announced a debt restructuring proposal that would dramatically shrink its business, while handing a majority equity stake to its creditors.
RCom, controlled by tycoon Anil Ambani, has been struggling to service Rs457bn ($7bn) of debt amid a price war launched by new entrant Reliance Jio, run by Mr Ambani’s brother Mukesh.
On Monday night RCom said that, if lenders accepted its plan, Rs70bn of debt would be converted into 51 per cent of its equity. A further Rs170bn would be repaid with funds raised through the sale of spectrum, towers and related assets, with an additional Rs100bn to be repaid through real estate…
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