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In a breather to Reliance Communications, overseas bondholders approved a restructuring plan under which the company will repay holders of bonds worth $300 million through a combination of cash and bonds of its overseas firm. Over 83 per cent voted in favour of the plan at the meeting held on Friday in London. “Pursuant to the Offer as approved, the Bondholders will receive cash proceeds of up to $118 million.
The Bondholders will also get $55-million bonds to be issued by Global Cloud Xchange Ltd (holding Company of GCX), a foreign subsidiary of RCom,” the company said in a statement.
Breathing space
Anil Ambani-led Reliance Communications had defaulted last year on the $300-million bond. The approval, therefore, gives RCom the breathing space to settle its overall debt instead of facing insolvency proceedings.
The company has received ₹2,000 crore following the closure of its sales of Media Convergence Nodes (MCNs) and related infrastructure assets to Reliance Jio Infocomm (RJio). Following the sales, 248 MCNs covering more than 5 m sq ft, used for hosting the telecom infrastructure, have been transferred to RJio, the company said in a statement.
Successful bidder
Earlier, on August 13, sources close to the development had told BusinessLine that RCom had received the first tranche of about ₹800 crore from the sales of its assets. This was mainly for the towers, optical fibre cable network, certain spectrum and MCN.
On December 28, the Mukesh Ambani-led Reliance Jio Infocomm (RJio) had emerged as the white knight to acquire the wireless assets of RCom, controlled by his younger sibling, Anil. RJio, a wholly-owned subsidiary of RIL, emerged as the successful bidder in the two-stage bidding process. RJio had announced plans to acquire RCom’s more than 43,000 towers, 1.78-lakh route km of optical fibre cable network, 122.4 MHz of spectrum in the 800, 900, 1800 and 2100 MHz bands and 248 MCNs. These assets are expected to contribute significantly to the largescale roll-out of RJio’s wireless, fibre-to-home and enterprise services, the Mukesh Ambani company said in a statement.
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