Shares of Reliance Communications slumped as much as 8.6 per cent on Tuesday as China Development Bank has filed an insolvency case against debt-ridden RCom, a move that would be opposed by Indian lenders.

After opening weak at Rs 13 against the previous close of Rs 13.35, the scrip touched an intraday high of Rs 13 and a low of Rs 12.20 on the BSE. In terms of equity volume, 27.71 lakh shares exchanged hands in the afternoon trade.

RCom shares ended lower by 3.37 per cent at Rs 12.90.

CDB, a lender to RCom, has filed the suit with the National Company Law Tribunal (NCLT) in Mumbai under the Insolvency and Bankruptcy Code (IBC).

RCom, which is reeling under a ₹45,000-crore debt, owes about ₹7,500 crore to CDB. With interest, this increases to about ₹9,000 crore. This makes CDB the first lender to file insolvency proceedings against billionaire Anil Ambani-controlled RCom.

In defence of its recent insolvency ordinance, the government has asserted that the entire effort is aimed at “disqualifying errant promoters” while providing for a level-playing field for all prospective resolution applicants, including the promoters.

There is no merit in the contention in certain quarters that the ordinance is “anti-promoter” and designed to keep away all promoters from participating in the resolution process, official sources said.

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