RCom tanks over 48%; other group shares crash too

Reliance Communications owned by billionaire Anil Ambani lost out in India's cut-throat price war

Reliance Communications owned by billionaire Anil Ambani lost out in India's cut-throat price war

RCom shares plummeted 34.91 per cent to close at Rs 7.55 on BSE.

Shares of Reliance Communications fell sharply on Monday and ended almost 35 per cent lower after the company chose to opt for insolvency proceedings following its failure to sell assets for paying back its lenders.

Following Monday's plunge in Reliance Communications shares, the stock price has eroded over 99 percent from the peak seen in 2008. At NSE, shares tumbled 34.91 per cent to close at Rs 7.55. The Nifty 50 was down 0.38 percent at 10,852.65 points, while the Sensex fell 0.37 percent to 36,333.19 points. The beleaguered company also found it hard to bring about an agreement among the lenders over the debt resolution plan. Computation of total realizable value is hard as there is lot of real estate in the asset mix.

Reliance Communications Ltd (R-Com), the Anil D. Ambani-led company, on Sunday said it would propose a similar debt resolution plan before the National Company Law Tribunal (NCLT) as it was pursuing outside the tribunal.

In one of India's most high-profile bankruptcy filing cases, RCom said lack of regulatory approval for asset sales as well as cases pending at the Supreme Court and Telecom Disputes Settlement and Appellate Tribunal (TDSAT) resulted in its decision to approach the National Company Law Tribunal (NCLT).

Rescuer killed in traffic collision as storms soak California
A flash-flood watch is in place through Saturday morning for the entire San Francisco Bay Area and much of the Central Coast. The heaviest rains were expected to move east by Saturday afternoon, Ms Phillips said, but more was on the way.

"The Company has been faced with various mostly, untenable issues raised by the Department of Telecommunications".

The decline of the company that was once India's fourth-largest mobile-phone service provider highlights the travails of the industry that borrowed heavily to expand in a market where tariffs are as low as 1 cent.

The crisis-hit firm said it was moving for bankruptcy protection after its attempts to pare Rs 42,000 crore debt failed despite attempts over the last 18 months to sell assets and negotiate with the lenders.

It expressed confidence on Sunday that its "substantial unsustainable debt and liabilities" would be extinguished under the NCLT process and it would be able to overcome challenges raised by minority lenders.

The latest blow for Rcom was the failure of the plan to sell assets worth Rs 18,000 crore owing to legal hurdles.

Recommended News

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.