RCOM to sell assets to repay debts : Anil Ambani

New Delhi Dec 26: Reliance Group Chairman Anil Ambani on Tuesday held a press conference and shared the details of RCom Future plans and the steps taken to reduce the debt.

Ambani had said that "RCom will exit SDR mechanism and that it would reduce its debt by about Rs 25,000 crore through the sale of some of its spectrum, tower, and real estate assets."

He added that "The reduction would allow the company to provide zero write-offs to lenders and bondholders, as well as no conversion of debt to equity and RCom will pay the debts in a phased manner between January to March 2018."

Currently Under SDR guidelines debt of Rs 7,000 crore was proposed to be converted into 51 percent of the company's equity but the company had exited and assured the banks that it would pay off the debts.

He added that "nine binding bids have been received and that the money received through the monetisation process would solely be used to prepay debts.Through this, RCom will be able to reduce debts by Rs 25,000 crore. The asset monetisation programme included the sale of spectrum, tower, fibe, mobile switching nodes & real estate. "

Finally, he said that "RCom will be converted into a B2B company and the new company will have a debt of Rs 6,000 crore.The new Reliance Communication will consist of enterprise, GCX, Data Center business and 4G sharing biz. 50 per cent of new RCom revenues will come from overseas"

The Company owes a debt of Rs 45,000 cr at the end of Oct 2017.