RCOM to convert Rs 70 billion debt to equity as per new debt restructuring plan

Reliance Communications (RCOM) has presented a fresh plan to recast its Rs 450 billion debt. The plan includes converting Rs 70 billion of debt into equity by banks and handing over the majority stake to them. The debt revamp plan involves RCOM raising money through an asset sale to repay Rs 170 billion of debt. Of this, it will raise around Rs 100 billion through the sale and commercial development of real estate assets, including its 100 acre headquarters near Navi Mumbai. The assets to be sold include its spectrum holding of 122 MHz valued at Rs 140 billion, Rs 70 billion from its tower business, Rs 30 billion from its optic fibre network and Rs 40 billion from its data centres.

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