14 February 2019: Reliance Communications (RCom) said the telco and its units will pay principal and interest on non-convertible Debentures (NCD) only post the debt resolution process as directed by National Company Law Tribunal(NCLT).
“…the payment of NCD shall be in the terms of and subject to the said resolution through NCLT,” said the debt-laden telco in a regulatory filing on Thursday.
The said NCDs are due to mature on March 1, this year .
RCom had informed on November 6, 2017, January 5, February 9, 2018 and January 23, 2019 about not fixing any record date for payment of principal and interest on the NCD till completion of restructuring process.
The Anil Ambani-led operator, which is under a debt of about Rs 40,000 crore, filed for bankruptcy protection in a dedicated court as it’s been unable to sell assets to repay debt over the past year and a half.
“As announced on 1st February, 2019, the Board of Directors of the Company reviewed the progress of the Company’s debt resolution plans since the invocation of SDR on 2nd June, 2017 and decided that the Company and two of its subsidiaries namely; Reliance Telecom Limited and Reliance lnfratel Limited will seek fast track resolution through NCLT, Mumbai,” the telco said on Thursday .
It added that “this course of action will be in the best interests of all stakeholders, ensuring comprehensive debt resolution in a final, transparent and time bound manner within the prescribed time of 270 days”.
The company is currently fighting a legal battle in Supreme Court with operational creditor Ericsson over non payment of dues. in which Chairman Ambani had to appear over contempt of court petitions filed by the equipment maker.
Shares of RCom closed at Rs 5.54, down by 3.99%, on the BSE on Thursday.