Anil Ambani-led Reliance Communications (RCom), which had recently said it would shut its 2G business by November, on Monday said it was asking lenders to convert part of their debt to equity for 51 per cent control of the stressed company under a “zero write-off” plan.

“Lenders will convert Rs 7,100 crore worth of debt into equity (under the strategic debt restructuring plan of the Reserve Bank of India). Post debt monetisation through sale of real estate assets, the company would have only Rs 6,000 crore of debt left,” said Puneet Garg, executive director and chief financial officer.

Anil Ambani-led Reliance Communications (RCom) has asked 60 per cent of its 81 million customers to migrate from using second generation (2G) services to 4G services, as it was shutting down the 2G business. This comes a day after the beleaguered company said it was shutting down its direct-to-home TV business.

The company has also asked around 1,000 employees to leave by the end of November.

Reliance Communications, which is in the midst of a debt restructuring, is shutting down its direct-to-home television business from next month after it failed to find any buyer for the business.

“DTH operations are a no-core area for RCom, and we are currently working with three leading DTH operators for seamless migration of our customers, for them to enjoy uninterrupted services. A new scheme without any additional costs will be communicated to our customers in the next few days,” said an official spokesperson of Reliance Communications.

Reliance Communications has received the approval from Department of Telecommunications (DoT) for the merger of wireless business of Sistema Shyam Teleservices Ltd (SSTL) with itself.

RCom will acquire about two million customers of Sistema Shyam, which operates under the brand name MTS, and additional annual revenues of around Rs 700 crore, the company said in a notice to the BSE.

Lenders to Reliance Communications (RCom) recently turned down a proposal by the telco to sell 17 properties across the country to repay Ericsson Rs111 crore, bankers said. RCom’s move to partly repay Ericsson’s dues, bankers said, was an attempt at settling the insolvency petition filed against it at the Mumbai bench of the National Company Law Tribunal. The proposal needs to be ratified by banks as they have initiated a strategic debt restructuring scheme for the company.

Lenders saddled with Rs 45,000 crore of Reliance Communications’ debt are not keen to convert it at the higher price announced by the company earlier to its shareholders because the current market price is far below the conversion price. Taking this price into account, the lenders are supposed to convert their debt in lieu of a 51 per cent stake in the company at a total equity valuation of Rs 6,150 crore as compared with the current market value of Rs 4,306 crore.

Shares of Reliance Communications (RCom) on Tuesday ended nearly 11% down on the bourses, eroding as much as Rs 523 crore in market capitalisation.

The RCom stock opened on at Rs 18.70 on the BSE, then lost further ground and fell to an intra-day low of Rs 16.75.

Reliance Communications (RCom) hit a record low of Rs 17.45, down 9% on BSE in early morning trade, after the company said that it has called off its merger with Aircel, owned by Maxis of Malaysia. The stock surpassed its previous low of Rs 17.80 touched on June 14, 2017 on BSE in intra-day trade.

“Legal and regulatory uncertainties, and various interventions by vested interests, have caused inordinate delays in receipt of relevant approvals for the proposed transaction,” RCom said in a statement.

MUMBAI: Three creditors of Reliance Communications and Aircel could challenge the dismissal of their right to call for a lenders’ meeting by the National Company Law Tribunal (NCLT) in the National Company Law Appellate Tribunal (NCLAT), people familiar with the matter said.

The key operational creditors — those who have dues because they provide a service, not because they lent money — are Ericsson, GTL Infrastructure, and Bharti Infratel.

NEW DELHI: Telecom operator Reliance Communications (RCom), which is reeling under debt of about Rs 45,000 crore, plans to issue shares to lenders for the debt that it has raised from them, as per a regulatory filing of the company.

The board of RCom is scheduled to meet on August 12 which will consider convening annual general meeting of shareholders to enable the firm seek their nod for converting debt into equity shares.

Inviting Real Estate Agents, Job Placements Agents, Educational Institutes, Software Service Providers, Real Estate Builders, Marriage Bureaus, Travel Agents, Restaurant Owners, Health & Fitness Centers and other Local Businesses to Post a FREE Classified Advertisement on Cootera.com Classifieds Website.