Debt-laden Reliance Communications today said it has convened a meeting of the holders of its USD 300 million ‘Senior Secured Notes’ in London on August 10 for the proposed restructuring of the bonds. “Reliance Communications has convened a meeting of the holders of its USD 300 million Senior Secured Notes due 2020 (the “Bonds”) for the purpose of considering, and if thought fit, passing, certain proposals relating to the restructuring of the Bonds…,” the company said in a regulatory filing. Earlier this week, Reliance Communications saw narrowing of its consolidated loss to Rs 342 crore for quarter ended June 30, 2018.
The company had reported a loss (attributable to equity holders) of Rs 1,245 crore in the same period a year ago. The Anil Ambani-led firm had posted a loss of Rs 19,728 crore in January-March 2018 period. RCom is undergoing debt resolution process under the Insolvency and Bankruptcy Code, 2016 (IBC). The company, in its earnings statement, had said it is confident of closing debt resolution during the second (ongoing) quarter of 2017-18.
According to the auditor’s note, since the firm is under debt resolution process, the loss of RCom would have been higher by Rs 1,786 crore if it had provided for interest of Rs 1,039 crore that it has to pay to lenders and foreign exchange losses including amortisation of Foreign Currency Monetary Items Translation Difference Account (FCMITDA) aggregating to Rs 747 crore during the quarter under review.
“However, impact is likely to be nil if requests of the company are accepted by the lenders,” the note said. RCom, which has closed its consumer mobile business, reported decline of around 27 per cent in consolidated income of Rs 1,008 crore during the reported quarter from Rs 1,380 crore it registered in the corresponding quarter of 2016-17. The company continues to operate its enterprise business.