China Development Bank says talks with India’s indebted Reliance Communications underway

By: | Published: December 29, 2017 8:56 AM

China Development Bank , a creditor of Reliance Communications Ltd, said it is in talks with the Indian wireless carrier, following a plan by the Anil Ambani-backed firm to reduce its debts.

Last month, China Development Bank initiated insolvency proceedings at India’s National Company Law Tribunal, adding that a large amount of principal and interest from RCom was overdue.

China Development Bank , a creditor of Reliance Communications Ltd, said it is in talks with the Indian wireless carrier, following a plan by the Anil Ambani-backed firm to reduce its debts. Any progress will be disclosed in the near future, the Chinese bank told Reuters late Thursday in response to a request for comment on the Indian carrier’s debt-reduction plan.

RCom, as the Indian carrier is known, announced on Tuesday a plan to slash its debt by 390 billion rupees ($6.1 billion) underpinned by the sale of some of its spectrum, tower, fibre and real estate assets for which the company said it has already received some non-binding offers.

It was not immediately clear if all key creditors were on board. Last month, China Development Bank initiated insolvency proceedings at India’s National Company Law Tribunal, adding that a large amount of principal and interest from RCom was overdue.

RCom had a net debt of 450 billion rupees at the end of October, putting it among India’s most indebted companies. ($1 = 64.0700 Indian rupees) (Reporting by Coco Li and Ryan Woo; Editing by Christopher Cushing)

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Switch to Hindi Edition