Debt-ridden Reliance Communications said Wednesday its shareholders have approved a cap of Rs 50,000 crore on its borrowing limit.
Debt-ridden Reliance Communications said Wednesday its shareholders have approved a cap of Rs 50,000 crore on its borrowing limit. The resolution to revise borrowing limit was passed as special resolution by around 90 per cent of shareholders at the annual general meeting of the company held on September 18, 2018, RCom said in a BSE filing. It was proposed that AGM will resolve that any committee that the board may form to borrow money in rupees or foreign currency to together with monies already borrowed by the company , apart from temporary loans from the company’s bankers in the ordinary course of business and “outstanding at any point of time shall not exceed Rs 50,000 crore”.
Riddled with debt of over Rs 40,000 crore, RCom Chairman Anil Ambani Tuesday announced that the company will completely exit the telecom business to concentrate on real estate in future. RCom owes over Rs 40,000 crore to a group of 38 lenders, including Chinese banks, and was resolving the debt through a strategic debt restructuring (SDR) process.
Ambani said there has been a “creative destruction” of the telecom sector that has resulted in creation of oligopoly which is going towards a duopoly and may be even a monopoly in the future. He added that the banks are saddled with over Rs 7.7 lakh crore in debt and the financial troubles of operators have resulted in over 20 lakh job losses in the sector.
Among other resolutions approved at the AGM, shareholders approved elevation of RCom President for telecom business Punit Garg as executive director of the company. He has been part of senior management team at RCom since 2002. The shareholders also approved appointment of Manikantan V as a Director and Chief Financial Officer of RCom.