New Delhi :Â Reliance Communications clinched the approval of overseas bondholders to ease its debt burden, putting the company a step closer to averting bankruptcy.
The Anil Ambani-owned company on Friday said it will repay holders of $300 million bonds through a combination of cash and bonds of its overseas firm.
“Reliance Communications (RCom) bondholders approved the tender and exchange offer of $300 million bonds with an overwhelming majority of over 83 per cent, at their meeting held on Friday, 24 August 2018, in London,” the company said.
Following the offer that has been approved, the bondholders will receive cash proceeds of up to $118 million. “The bondholders will also get $55 million bonds to be issued by Global Cloud Xchange Limited (holding Company of GCX), a foreign subsidiary of RCom,” the company said.
The Global Cloud Xchange bonds will be unsecured and carry a coupon of 0.1 per cent with maturity of four years, it added. The company on Thursday sealed the planned sale of its media convergence nodes (MCNs) and related infrastructure assets, worth Rs 2,000 crore, to Reliance Jio Infocomm (RJIO).
NEW DELHI: Reliance Communications has sought shareholders’ approval to enhance the company’s borrowing limits to up to Rs 50,000 crore to meet its capital requirements. The company said its annual general meeting is scheduled to be held on September 18, 2018 to consider various proposals, including revising borrowing limits, alterations to the Articles of Association of the company, and private placement of non-convertible debentures or other debt securities.