Advertisement

  • News
  • Columns
  • Interviews
  • BW Communities
  • Events
  • BW TV
  • Subscribe to Print
  • Editorial Calendar 19-20
BW Businessworld

Reliance Communications Shares Jump After New Debt Repayment Plan

The company, with $6.8 billion of net debt as of last March, said it will look to repay Rs 170 billion ($2.62 billion) of loans by selling assets such as mobile towers

Photo Credit : Reuters

1464674554_WScjJ0_RELIANCE-COMM-reuters-470.jpg

Shares in embattled wireless carrier Reliance Communications rose more than 10 per cent in early trade on Tuesday after the company presented a new debt repayment plan to its lenders.

The company, with $6.8 billion of net debt as of last March, said it will look to repay Rs 170 billion ($2.62 billion) of loans by selling assets such as mobile towers. It also pledged to repay another 100 billion rupees from sale or commercial development of its real estate assets.

Under a central bank debt restructuring plan, its lenders will also swap Rs 70 billion of the loans to take a 51 per cent stake in the company commonly called as Rcom.

The stock was up 13 per cent at 0352 GMT, compared with a 0.2 per cent fall in the broader NSE Nifty.

The stock has tumbled this year, hitting a series of record lows on worries about whether it can pay back its debt.

(Reuters)


Tags assigned to this article:
rcomm reliance communications debt repayments