Shares of Anil Dhirubhai Ambani Group rebounded Friday after crashing since the last few days on report of Reliance Communications saying it will move the insolvency tribunal for bankruptcy protection. In the early trade, Reliance Power jumped 13 per cent followed by Reliance Communications and Reliance Infrastructure surging by 4 to 5 percent. Reliance Naval also gained more than 5 percent.
The RCom stock on Monday ended nearly 35 per cent lower and fell by another 28.5 per cent the next day after the firm decided to opt for insolvency proceedings. The other firms in the group also saw a fall in the share prices following plunge in RCom stock.
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On February 1, RCom’s board reviewed the progress of the company’s debt resolution plans since the invocation of strategic debt resolution on June 2, 2017. The board noted that despite the passage of over 18 months, lenders have received zero proceeds from the proposed asset monetisation plans, and the overall debt resolution process is yet to make any headway, the statement said.
“Accordingly, the board decided that the company will seek fast-track resolution through NCLT, Mumbai. The board believes this course of action will be in the best interests of all stakeholders, ensuring comprehensive debt resolution in a final, transparent and time-bound manner within the prescribed 270 days,” the statement said.
Meanwhile, the domestic stock markets – Sensex and Nifty – extended losses in the late morning trade on Friday morning, tracking weak global cues. The Sensex is down about 219 points to 36,746.92, while the Nifty is trading above the 11,000-level.