RCom talks to banks on rescheduling loan payments

News Wireless India 29 MEI 2017
RCom talks to banks on rescheduling loan payments
Indian operator Reliance Communications has fallen behind on payments of its bank debt and may soon be in default, the Economic Times reported. Over 10 Indian banks have designated the company as a "special mention account" in their asset books, as RCom has not serviced its debt in at least 30 days. Some may classify the loans as non-performing assets within a fortnight, an unnamed bank official told the paper. 

The company's shares have already fallen over 20 percent in the past two weeks after credit rating agencies downgraded the group due to fears it could not sustain its profitability in the face of the touch competition on the Indian mobile market. The CARE agency cut the company's long term facility rating from A- to BB and the short term facility rating from A2+ to A4 and put the company on credit watch with developing implications. 

A RCom spokesman told the paper the company was on track to meet its debt obligations by the end of September, once it concludes its planned tower sale to Brookfield and takeover of Aircel. The company is in talks with lenders to reschedule payments in the interim period. In a statement last week, RCom said it met on time its half-yearly interest payment on its senior secured bonds due 2020. 

Categories:

Mobile

Companies:

Reliance Communications,  RCom

Countries:

India

Tags:

Finance

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