Rcom spurts as lenders take control

Rcom is the top gainer today on the BSE since the opening bell. It breached the upper circuit at Rs.17.25 and went on to scale 16% higher at Rs.18.20. Its 52-week high and low stands at Rs.47.30 and Rs.15.60 respectively.

Yesterday, late in the evening, the company announced that the lenders have decided to take control of Rcom as its debt reduction came to a naught.

It has presented a “zero loan write-off” plan to the lenders wherein :

• It will repay debt up to Rs.17,000 crore through asset monetization;
• It will repay additional debt of Rs.10,000 crore through sale and commercial development of real estate;
• Banks have agreed to convert R.7000 crore of loans into equity; this conversion to be done between 7th Dec to 15th Dec;
• Banks to take minimum of 51% stake in Rcom as they have invoked Strategic Debt Reduction mechanism;
• The New RCom will have sustainable and conservative level of debt of only Rs. 6,000 crore;
• RCom is under a standstill period (for interest and principal repayments) till December 2018 and expects to complete the SDR process as per applicable RBI guidelines.Rcom