RCom Shares Battered Further, Tank Nearly 13 Percent as Company Opts For Insolvency Proceedings

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New Delhi: Shares of Reliance Communications continued to reel under selling pressure on Wednesday, falling below its face value of Rs 5, plunging nearly 13 per cent.

RCom stock plummeted 10.84 per cent to Rs 4.85 — its all-time low — on BSE. At NSE, shares crashed 12.61 per cent to Rs 4.85 apiece.

On Monday, RCom stock ended nearly 35 per cent lower and fell by another 28.5 per cent the next day after the company decided to opt for insolvency proceedings. Among group shares, Reliance Infrastructure tanked 28.78 per cent and Reliance Capital plunged 10.61 per cent on BSE Wednesday.

“RCom board of directors decides upon implementation of debt resolution plans through NCLT framework,” the company said in a statement on February 1.
It is estimated that RCom has been reeling under a debt of over Rs 46,000 crore.

On February 1, RCom’s board reviewed the progress of the company’s debt resolution plans since the invocation of strategic debt resolution on June 2, 2017.

The board noted that despite the passage of over 18 months, lenders have received zero proceeds from the proposed asset monetisation plans, and the overall debt resolution process is yet to make any headway, the statement said.

“Accordingly, the board decided that the company will seek fast-track resolution through NCLT, Mumbai. The board believes this course of action will be in the best interests of all stakeholders, ensuring comprehensive debt resolution in a final, transparent and time bound manner within the prescribed 270 days,” the statement said.

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