By The Economic Times
November 16, 2017
NEW DELHI: Shares of Reliance Communications tanked 5 per cent in Thursday’s trade after the debt-ridden telecom operator said that it is not making any payment to lenders or bond-holders for the time being as it is under ‘standstill period’ with invocation of strategic debt restructuring scheme and working on asset-monetisation.
The stock fell 4.93 per cent to hit a low of Rs 9.85 on BSE. The scrip hit an all-time low of Rs 9.60 on Wednesday.
In a regulatory filing, the telecom operator said that is in standstill period till December 2018 pursuant to the SDR (strategic debt restructuring) guidelines.
In a BSE filing, the company said that it has announced various asset sales and a comprehensive debt resolution plan. “Accordingly, for the time being, no payment of interest and/or principal is being made to any lenders and / or bondholders,” it said.
Meanwhile, the company said that National Company Law Tribunal, Mumbai bench, has dismissed an application under Section 9 of the Insolvency and Bankruptcy Code filed by Manipal Technologies (MTL) for dues of Rs.2.74 crore.