Co’s shares end nearly 4% lower on insolvency buzz

 Shares of Reliance Communications on Tuesday ended nearly 4 per cent lower amid reports that China Development Bank has filed an insolvency case against the telecom firm, which the company has denied. Trimming most of its early losses, the stock ended the day at Rs 12.90, down 3.37 per cent on BSE. During the day, it slipped 8.61 per cent to Rs 12.20.

At NSE, shares of the company went down 3.74 per cent to close at Rs 12.85. In terms of equity volume, 67.51 lakh shares of the company were traded on BSE and over 7 crore shares changed hands at NSE during the day. BSE had sought clarification from RCom after market hours on Monday with respect to news that China Development Bank has filed an insolvency case against it. In a clarification to BSE, Reliance Communications spokesperson Monday said: “The company has not been served any notice of the application filed by China Development Bank with NCLT, as reported in the media.”

However, in the interest of all stakeholders, the spokesperson said: “The company is engaged through the JLF (joint lenders forum) with all its lenders for a successful resolution of the SDR process. China Development Bank has also been actively participating in the JLF.”