Reliance Communications says will not be paying Rs 375 cr to NCD holders

Debt-ridden telecom firm Reliance Communications Wednesday said it will not be paying the fourth installment of Rs 375 crore principal amount on non-convertible debenture, which is due on February 7.

In a regulatory filing, the company said it is working expeditiously to complete the process of asset sale, which is likely to be completed by end-March 2019.

"...The company is not making payment of 4th installment of Rs 375 crore of principal on NCD's which is going to be due on February 7, 2019 and interest payable on NCD's till completion of restructuring process," the Anil Ambani-led firm said.

Earlier, the company had informed about its assets monetisation programme and the signing of binding agreements for sale of wireless spectrum, tower, fibre and media convergence node assets.

"Presently, the company is working expeditiously to complete the process and expects to close the same by end of financial year March, 2019, subject to receipt of applicable approvals as may be required for the purpose. 

"The assets sale proceeds shall be utilised to repay company's debt including NCD's in such manner as may be decided by the Joint Lenders Forum," Reliance Communications added.

The company has posted a consolidated loss of Rs 341 crore for the third quarter ended December 2018. It had registered a loss of Rs 206 crore in the same quarter a year ago. 

The loss figure excludes interest and foreign exchange impact.