RCom shares declined by 48% on Monday 4th Feb as it approches NCLT
- Reliance Communication declined by 48% to Rs. 6, after the telco sought debt resolution plan through the National Company Law Tribunal (NCLT).
- At 10.44 am, RCom was trading at Rs. 7, fell by 39.66%, with a volume of 196.80 lakh shares on the BSE.
Know why Reliance Communications shares have Dropped 50% – 4th Feb 2019
Shares of Reliance Communications, the debt laden telecom operator led by Anil Ambani plunged 50% in the morning trades on February 4, 2019 after it informed exchanges that it will file for bankruptcy and propose debt resolution under National Company Law Tribunal (NCLT) through sale of assets.
Following are details from its filling to exchanges on February 01, 2019.
- The company has been faced various issues raised by the Department of Telecommunications.
- The company said the management will propose a resolution plan to NCLT that is similar to the one being sought out outside court. The plan involves sale of assets to repay lenders.
- RCOM is seeking to sell all of its infrastructure assets and spectrum along with a 30 million sq ft development at Dhirubhai Ambani Knowledge City complex among other real estate assets.
- The company has been faced with various mostly, untenable issues raised by the Department of Telecommunications.
- Further, challenges raised by unreasonable minority lenders can be now be overcome through the NCLT’s 66% majority rule, against the 100% approvals rule outside NCLT.
- The RCOM Board expects to service all of its debt under the NCLT in 2019 itself.