RCom receives bondholders' nod to sell assets

In a major relief to debt-laden Reliance Communications (RCom), the bondholders on Wednesday approved the sale of its certain assets to Reliance Jio Infocomm as also monetisation of other real estate properties.

RCom, in statement, said that the bondholders also approved the release of their security on the company's assets and to accept part prepayment of their outstanding bonds.

"The holders of the company's $300 million bonds, on March 20, 2018 in London, have approved with overwhelming majority the sale of assets to Reliance Jio Infocomm and also monetisation of other real estate assets," the company said.

In December 2017, Mukesh Ambaniled Reliance Jio had announced a mega deal to acquire mobile business assets including spectrum, mobile towers and optical fibre network of RCom, owned by his younger brother Anil Ambani. The asset sale process, that would have helped RCom pare its debt, however, hit a hurdle when an arbitration court's interim order barred the sale of assets without its permission, on an appeal by telecom gear maker Ericsson India.

Shares of Reliance Communications (RCom) today soared 9.5 per cent after the company said its bondholders have approved "with overwhelming majority" sale of its certain assets to Reliance Jio Infocomm as also monetisation of other real estate properties.

The stock zoomed 8.86 per cent to settle at Rs 25.20 on BSE. Intra-day, it jumped 12 per cent to Rs 25.95.

The bondholders approved the release of their security on the firm’s assets and to accept part prepayment of outstanding bonds