RCom lenders might recover just a fourth of their loans after asset sale
Airtelhas made an upfront ₹9,500 crore offer for all of Rcomm’s assets.
- Mukesh Ambani’s
Jiohas only offered a ₹3,600 crore cash payment.
- But even the highest bid is still just one fourth of the company’s debt of ₹46,000 crore.
The highest bid was by Bharti Airtel which made a ₹9,500 crore upfront offer, sources told Mint. Meanwhile Anil Ambani’s elder brother Mukesh Ambani’s Jio has offered ₹3,600 crore as cash payment, but hasn’t bid on spectrum or real estate assets.
The others who bid include UV Asset Reconstruction and US-based equity fund Varde Partners.
Rcom’s assets include airwaves in 14 telecom circles, 43,000 telecom towers, licence for its 800 MHz 4G spectrum--that is set to expire in July 2021. RCom’s real estate assets are also up for offer.
Lenders have been trying to sell all of its assets at one go, instead of auctioning each asset individually.
Reliance Communications slipped into bankruptcy in May this year, after which resolution professionals took over the company. It had been losing customers for years before due to extreme competition and an excessive debt that ate into its equity value as well.
It had tried to sell its assets to Jio earlier this year but it could not go through after Ericsson filed a case in courts on non-payment of dues.
Two Anil Ambani Group stocks — which were trading for less than ₹1 — are buzzing again
Chinese banks have a lot to lose as Anil Ambani’s RCom assets may be worth a quarter of the loans
- Sensex drops 195 pts; snaps 4-day winning run on losses in IT, FMCG shares
- Best pilgrimage destinations to visit in India
- After eliminating extreme poverty, India now eligible to move to a higher poverty line: report
- Stock market closes on negative note as Sensex ends winning streak
- Lava Blaze Curve 5G launched in India starting at ₹17,999