With a few of its deleveraging plans, which included a merger with Aircel, collapsing, cornered RCom on Monday introduced a contemporary plan to recast its Rs 45,000 crore debt to lenders that features changing Rs 7,000 crore of debt into fairness by banks and handing over majority stake to them.
If the newest rescue try goes via, lenders led by SBI will maintain a minimum of 51 % within the telco and promoters stake might be halved to round 26 %.
The debt revamp plan includes the Anil Ambani-run RCom elevating cash via asset sale to repay Rs 17,000 crore of debt, govt director Punit Garg stated, including although whole worth of the property is over Rs 30,000 crore they’re conservatively elevating solely Rs 17,000 crore.
Of this, it should increase round Rs 10,000 crore via sale and industrial growth of actual property property, together with its 100-acre headquarters, DAKC (Dhirubhai Ambani Information Centre) within the close by Navi Mumbai, he stated.
The property which might be placed on block embody its spectrum holding of 122 MHz valued at Rs 14,000 crore, towers enterprise from the place it could possibly get Rs 7,000 crore, optical fibre community valued at Rs three,000 crore and information centres which may fetch Rs four,000 crore, Garg added.
The telco claimed that beneath the brand new plan there might be zero write-off for the lenders, who used to taking haircuts in harassed property, and that this may make RCom a sustainable and worthwhile if the brand new restructure plans goes via.
Though RCom has time until December 2018 beneath the strategic debt restructuring (SDR) settlement with the lenders, it’s assured of getting via with the asset monetisation efforts by March 2018.
The lenders have appointed SBI Caps to hold out the brand new monetisation plan.
Even beneath the continued SDR, banks would have any means taken majority possession, however the collapse of a slew of offers together with a deliberate merger with Aircel earlier this month, had raised doubts over its sustainability.
The merger with Aircel was the final straw of hope for the corporate, however didn’t undergo as a result of a slew of litigations filed by lots of its unpaid distributors like Ericsson amongst others and even particular person shareholders.
At Monday’s closing worth, RCom was valued at over Rs three,900 crore solely. However when requested concerning the conversion of Rs 7,000 crore debt to fairness, Garg stated they assume an appreciation within the enterprise worth as soon as the brand new restructuring began. He additionally stated had the merger cope with Aircel occurred the capital base would have expanded by 10 %.
Talking concerning the consequence of the assembly, Garg stated, “the lenders had been very snug trying on the conservative administration estimates”.
When requested if it has obtained the lenders nod, Garg stated, “Do you assume lenders can refuse a zero write-off plan… they bought to be so glad that they wished it to be accomplished as of yesterday.”
As a part of the plan, the lenders might be left with Rs 6,000 crore of debt which Garg stated might be sustainable.
He stated the property might be offered one after the other transparently with the assistance of transaction advisors in a course of overseen by lenders and RCom won’t get into bilateral agreements for gross sales.
Requested whether or not Reliance Jio, with which it has ongoing pacts for sharing towers, fibre and spectrum, may be fascinated about these property, Garg replied within the affirmative.
“So far as their (Jio) curiosity is anxious, I feel at this second theyre very a lot fascinated about plenty of our property. They’ve stated very clearly that if it’s a clear course of, which is run by lenders, theyre glad to bid and choose up some property from them,” he stated.
Earlier, RCom was trying to scale back its debt by over Rs 25,000 crore via a merger with Aircel and likewise promoting its tower telecom mast enterprise to Brookfield Infrastructure, which looks like going for a rebid as a part of the plan introduced in the present day.
In the meantime, Garg additionally confirmed that RCom is considerably lowering its presence within the 2G and 3G voice enterprise to focus on the 4G providers and likewise the enterprise enterprise.
He, nevertheless, didn’t share the variety of jobs that might be impacted due to this