Debt-ridden Reliance Communications has convened a meeting of its $300 million bondholders on March 6 in London to seek approval for an asset monetisation proposal.
The company, controlled by billionaire Anil Ambani, intends to make partial redemption of bonds at face value. The bonds are currently trading at 32-37 per cent discount and bondholders are proposed to be treated at par with other secured lenders, the company said in a regulatory filing.
RCom has proposed reduction of coupon rate and extended maturity period by eight years to 2028 for the bonds remaining after redemption, it added.
The bonds, maturing in 2020, were issued in May 2015 at 6.5 per cent interest.
In December, RCom entered into an agreement to sell its wireless assets — spectrum, towers and fibre — to Reliance Jio Infocomm for an undisclosed sum. Following the deal, RCom became a company offering services to B2B company, but it continues to focus on 4G MVNO (data-oriented business) to corporates.
Banking on its B2B businesses, RCom now expects to emerge profitable in the fourth quarter of this financial year and start the next financial year with a clean slate. The company had posted a reduced net loss of ₹130 crore in the third quarter ended December 31, 2017.