Shares of Reliance Communications soared over 14 per cent on Tuesday amid reports that lenders of the debt ridden firm have approved the sale of its real estate assets in Delhi and Chennai to a Canada-based company.

The stock surged 14.10 per cent to Rs 13.75 on BSE.

On NSE, shares of the company zoomed 14.10 per cent to Rs 13.75.

Hong Kong: Reliance Communications Ltd (RCom) which defaulted on dollar bonds last week in the highest-profile debt failure since India’s new bankruptcy code was passed, faces risks of insolvency if it can’t sell its assets at high enough valuations, according to SC Lowy Financial HK Ltd.

“We think the valuations they have provided are optimistic,” said Mihir Chandra, head analyst at the distressed loan and bond trading firm. “If they can’t sell assets at the valuations that they’ve guided to, then the more likely outcome is an insolvency process.”

MUMBAI: Aircel and Reliance Communications have accused larger rivals Bharti AirtelBSE 0.75 %, Idea Cellular and Vodafone India of trying to poach subscribers through misleading campaigns that claimed the smaller telcos were shutting down their overall and enterprise voice businesses, respectively.

Both Aircel and RCom, struggling to stay afloat after attempts at merging their businesses fell through recently, have complained to the telecom department (DoT) and the regulator, seeking action against the three service providers.

Shares of lenders to Anil Ambani-controlled Reliance Group (ADAG) declined on Wednesday as group companies witnessed selloff amid concerns over default in interest payment by Reliance Communications (RCom), the group’s telecom unit. Among the lenders who have an exposure to RCom, the stock of Corporation Bank declined the most with a fall of close to 7%. It was followed by Dena Bank (down 3%), IDBI Bank (down 2.3%). Although the shares of Bank of Baroda ended the session in green, the stock had lost nearly 3% of its value during the day. Other lenders including State Bank of India, Punjab National Bank, Canara Bank, Bank of Maharashtra and IFCI also slid over 2% each during intra-day trade.

Hong Kong: The first default on US dollar bonds by an Indian company in 15 months may become a closely-watched test case for how international creditors will fare under the country’s new bankruptcy laws.

Reliance Communications Ltd, the Indian mobile phone operator controlled by billionaire Anil Ambani, failed to pay a coupon on its 2020 dollar notes before the expiry of a grace period on Monday, according to a person familiar with the matter. It’s India’s most high-profile default on international debt since the nation’s insolvency and bankruptcy code was passed in May 2016.

The Mumbai bench of the National Company Law Tribunal (NCLT) on Thursday asked Ericsson India, the telecom equipment vendor of Reliance Communications (RCom), to file a bank certificate in relation to the payment details from RCom within 10 days. The case will be heard on November 23. The NCLT is hearing an insolvency petition filed by Ericsson as an operational creditor against RCom, Reliance Infratel and Reliance Telecom.

NEW DELHI: Reliance Communications (RCom's) Rs 11,000-crore tower deal with Canada's Brookfield has collapsed, company director Puneet Garg said on Wednesday. The setback comes at a time when lenders to the company are trying to sell assets in a piece-meal fashion to recover their dues, nearly a month after the telco's merger deal with Aircel had fallen through.

After it entered strategic debt restructuring (SDR), RCom gave 51% equity (valued by the company at Rs 7,100 crore) to bankers in lieu of its outstanding debt of Rs 47,000 crore.

MUMBAI: Reliance Communications is renegotiating its deal with Canadian investment fund Brookfield along with other potential buyers for a stake in its tower unit, the telecom company said on Tuesday.

The Anil Ambani-controlled company disclosed this in a regulatory filing, after stock exchanges sought clarification from RCom on an ET report that said the Brookfield deal in its earlier form had been called off. RCom shares closed 1.89% lower at Rs 15.55 Tuesday on the BSE, where the benchmark Sensex fell 1.07%.

With the bulk of its wireless telephony business shutting down, Anil Ambani-owned Reliance Communications (RCom) on Monday skipped interest payment to its bond holders.

The company didn’t pay the interest, of about $9.75 million due on Monday, on its $300-million bonds that will mature in 2020.

MUMBAI: Anil Ambanii-led Reliance Communications (RCom) is likely to function as a mobile virtual network operator (MVNO) that will offer 4G services once it sheds its 2G and 3G voice business. This was confirmed by Punit Garg, the telco’s executive director, during a recent media gathering.

Rating agency Fitch expects RCom to gradually exit from the wireless voice business and significantly scale down its operations due to intense competition. It said in the report that the Anil Ambani-owned operator will ‘focus on offering 4G services as a mobile virtual network operator (MVNO) after selling its spectrum assets’. Shares of RCom closed at Rs 17, down 0.87%, on the BSE on Wednesday.

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