Troubled telecom company Reliance Communications, which has been weighed down by a debt of Rs 450 billion (about US$7 billion), claims it has reached an out-of-court settlement with China Development Bank (CDB) and other lenders.
Company chairman Anil Ambani, the younger brother of India’s richest man Mukesh Ambani, said at a press conference on Tuesday that Reliance would sell telecom assets, including spectrum, towers and fiber worth Rs 250 billion ($3.9 billion), by March 2018 to pre-pay lenders and leave the ongoing strategic debt recovery program, reports Economic Times.
Earlier, CDB had filed an insolvency petition in the bankruptcy court to recover $1.78 billion. Anil Ambani claims an out-of-court agreement was reached with the Chinese bank on Monday evening.
The company plans to monetize real-estate assets to generate another Rs 100 billion and divest a Rs 40-billion ($620-million) stake in Reliance Communications to private equity investors overseas, after having shut its wireless business. The stake to be sold to foreign investors is made up of its global undersea cable business, data centers and enterprise business, the daily added.
Ambani said once the process is over its debt will shrink to Rs 60 billion. Some 35 lenders, led by State Bank of India, the country’s leading state-owned bank, have until tomorrow – December 28 – to decide if they want to convert debt to equity.