New Delhi: Debt-laden Reliance Communications Ltd (RCom) shares lost more than half of its market value on Monday after the telecom operator said it will seek quick resolution through India’s National Company Law Tribunal (NCLT) to settle its debt. The scrip was trading 36.64 percent lower at Rs 7.35 on BSE at 9.37 am on Monday, down more than over 50 percent in the early trade.
The company said, in a filing to BSE, that its management will put forward a similar plan in the NCLT process to resolve its indebtedness. It was so far being pursued outside of the NCLT.
RCom to sell off assets
RCom said it plans to sell off its spectrum and telecom infrastructure assets; strategic monetisation of Indian Enterprise, GCX and IDC. The telecom operator will also sell off real estate assets, including the 30-million square feet development at the Dhirubhai Ambani Knowledge City complex.
“The company has been faced with various mostly, untenable issues raised by the department of telecommunications. These issues inter alia resulted in numerous legal issues at High Courts, TDSAT and the Supreme Court, which frustrated the existing plan and can now be addressed/resolved under the NCLT process,” RCom told BSE.
Fast-track resolution of RCom’s debt
The telecom operator’s board has asked for a quick resolution process for NCLT without challenges and uncertainties. “The board remains confident on future prospects as a going concern under new ownership on completion of the NCLT resolution process,” the company said.