RCom completes sale of fibre assets to Reliance Jio for Rs 30 billion

Reliance Communications on Monday said it has completed sale of its fibre assets and related infrastructure assets, worth Rs 30 billion, to Mukesh Ambani-backed Reliance Jio Infocomm (RJIO).

"With successful completion of the fibre monetisation transaction, 1,78,000 kilometers fibre stand transferred to RJIO," Reliance Communications said in a BSE filing.

Last week, Reliance Communications had completed the planned sale of its media convergence nodes (MCNs) and related infrastructure assets, worth Rs 20 billion, Reliance Jio Infocomm.

Earlier this month, Reliance Communications had reinstated bank guarantees worth Rs 7.74 billion with the telecom department ahead of the timeline set by the telecom tribunal, and had said that its Rs 250 billion asset sale plans were "on track".

Last year, Anil Ambani-owned Reliance Communications signed a pact with Reliance Jio for sale of wireless spectrum, tower, fibre and MCN assets - the proceeds of which were to be used to reduce debt.

Reliance Communications gets relief from bondholders as deadline looms

Reliance Communications Ltd., the embattled Indian phone company headed by billionaire Anil Ambani, clinched the approval of its overseas bondholders to ease the carrier’s debt burden, putting the company a step closer to averting bankruptcy.
The Indian phone operator, which defaulted last year on a $300-million bond, got 83 percent of bondholders to approve the plan, the company said in an exchange filing.

The vote was crucial for Ambani because settling the matter was a precondition for RCom to reorganise its larger local debt. The company has been working against the clock to reach agreements with all its creditors by Aug. 27 or face insolvency proceedings.
RCom is also in the midst of completing its sale of airwaves, towers and fiber to a rival controlled by Ambani’s older brother, who’s India’s richest man. The brothers wrapped up a smaller deal involving transmission nodes, worth 20 billion rupees, on Aug. 23.

RCom planning to complete Rs 250-billion assets sale by August-end

Debt-ridden Reliance Communications is looking to complete the sale of its business assets worth Rs 250 billion by the end of this month and has also agreed to pay Rs 5.5 billion towards settlement to telecom gearmaker Ericsson by September-end.

Reliance Communications in a regulatory filing said that it has "agreed to pay a settlement amount of Rs 5.5 billion to Ericsson on or before September 30, 2018".

The Supreme Court of India on August 3 approved the settlement arrived at between RCom and Ericsson India Pvt Ltd over a payment dispute and asked the Anil Ambani-led firm to pay Rs 5.5 billion to the Indian arm of Swedish firm by September 30.

Ericsson India Pvt Ltd, which had signed a seven-year deal in 2014 to operate and manage RCom's nationwide telecom network, had alleged that it had not been paid the dues of over Rs 15 billion and challenged the debt-ridden firm before National Company Law Appellate Tribunal (NCLAT).

Headcount at RCom down 94% to 3,400 from peak of 52,000 in 2008-12

Debt-ridden Reliance Communications on Wednesday said that the total number of jobs at the company have been reduced by about 94 per cent to 3,400 at present, from a peak level of 52,000. "Total number of people in the RCOM group: from peak of approximately 52,000 to current 3,400, a reduction of approximately 94 per cent," RCom said in a BSE filing on Wednesday. 

The company is estimated to be at peak in around 2008-10. RCom, which is reeling under debt of around Rs 450 billion, closed its mobile services business in January this year and continues to provide business-to-business (B2B) telecom services.

Jio effect: Reliance Communications registers Q3 net loss at Rs 531 cr

Latest News - Anil Ambani-led Reliance Communications Saturday reported consolidated net loss of Rs 531 crore for October-December 2016, mainly due to free 4G services being offered by his elder brother Mukesh Ambani's Reliance Jio.

The company had posted net profit of Rs 303 crore in the same period a year ago.

"The company suffered a net loss of Rs 531 crore during the quarter primarily on account of... Unprecedented competitive intensity. This was the first full quarter after the company's complete shutdown of its profitable CDMA operations," RCom said in a statement.

Reliance Jio launched its (Read More)