MUMBAI May 29 Shares in Indian mobile carrier
Reliance Communications Ltd fell as much as 20 percent
to an all-time low on Monday, after it reported a $150 million
fourth-quarter loss and worries about its heavy debt load
The company, controlled by billionaire Anil Ambani, over the
weekend posted its second straight quarterly loss, dragged down
by a price war in what is the world's second-biggest mobile
market by number of users.
The Economic Times newspaper on Monday reported that the
company had delayed repayment of loans to more than 10 banks.
Reliance Communications declined to comment on the Economic
In its quarterly results statement, however, Reliance
Communications said that "pending formal confirmation by the
lenders for waiver of certain loan covenants", some loan amounts
would continue to be classified as non-current liabilities.
The company plans to repay 250 billion rupees ($3.9 billion)
worth of loans to its lenders with proceeds from its deals with
Aircel and Canada's Brookfield Infrastructure, the newspaper
cited a company spokesperson as saying. bit.ly/2rdOeYj
Reliance Communications is merging its wireless business
with rival Aircel, and is also selling a 51 percent stake in its
radio masts business to Canada's Brookfield Infrastructure Group
for 100 billion rupees.
Following a sell-off last week due to debt concerns, shares
in Reliance Communications plunged further on Monday, falling to
their maximum daily limit and hitting a record low of 20.60
rupees. They were down 13 percent at 22.40 rupees at 0440 GMT.
A sell-off in its 2020 bonds also resumed on
Monday with yields spiking to 17.2 percent after ending at 12.3
percent last week.
($1 = 64.5600 Indian rupees)
(Reporting by Swati Bhat, Devidutta Tripathy, Sankalp Phartiyal
and Euan Rocha in Mumbai and Jessica Kuruthukulangara in
Bengaluru; Editing by Himani Sarkar)