KEY HIGHLIGHTS: 

  • Lenders will not covert debt into equity till December. 
  • Open to selling strategic sale in global operations 
  • Committed to restore credit ratings

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Currently battling losses and credit rating downgrades, Reliance Communications’ (Rcom) chief Anil Ambani tried to calm investors’ nerves in Mumbai after a joint lender forum was constituted.

Ambani, addressing a press conference, said that the Rcom presented its debt payment plan to its lenders who approved it given the company time till December 2017 to pay the loans due.
Ambani said that lenders will not convert debt into equity till December, 2017.

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Rcom’s India business CEO Punit Garg said that the telecom sector is seeking moratorium for spectrum payments.

ALSO READ: Telecom sector seeks deferral of spectrum payment from Govt

He said that the competition in the sector is intense with data prices crashing to Rs 3 per GB from Rs 250 per GB in a short span.

He said that revenues of the telecom companies are falling sharply and last years have seen 10,000 jobs cut in the sector. The number is likely to grow to 30,000-40,000 in 2017, Garg warned.  

Debt, at Rs 2.8 lakh crore, is a major issue plaguing the telecom sector with the finance ministry also taking a view on the same.

ALSO READ: Reliance Communications assures lenders of Rs 25,000 crore payment in four months