HONG KONG: Reliance Communications Ltd, the mobile phone operator that defaulted on dollar bonds last week in the highest-profile debt failure since the countrys new Bankruptcy Code was passed, faces risks of insolvency if it cant sell its assets at high enough valuations, according to SC Lowy Financial HK Ltd.
We think the valuations they have provided are optimistic, said Mihir Chandra, head analyst at the loan and bond trading firm. If they cant sell assets at the valuations that theyve guided to, then the more likely outcome is an insolvency process.
The embattled firm controlled by billionaire Anil Ambani plans to repay debt of as much as 270 billion rupees ($4.15 billion) through the sale of assets and land, it said last month….
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