RCom’s submarine cable arm seeks times from holders of dollar-denominated bonds

Our Bureau Mumbai | Updated on July 26, 2019

The bonds are maturing on Aug 1

In a hint of more trouble for Anil Ambani’s Reliance Communications, one of its subsidiaries sought more time from holders of its dollar-dominated bonds maturing on August 1.

Global Cloud Xchange (GCX), the submarine cable subsidiary of debt-laden RCom, on Friday said it is continuing discussions with its largest bondholders to seek a forbearance agreement enabling time to discuss options related to the upcoming maturity of the $350-million, 7 per cent, senior secured notes issued by the company.

This comes after a prospective private loan provider said it would not be proceeding with the loan on a timetable that would have allowed the company to repay the bonds at par at maturity, it added. This comes even as RCom is facing insolvency proceedings under the Insolvency and Bankruptcy Code (IBC).

Monetisation plans

At its annual general meeting in September 2018, RCom Chairman Anil Ambani had said the firm would exit the telecom business entirely, with plans to monetise its enterprise business (in India) and GCX at an “appropriate time”.

“As we have moved out of the mobile sector, we will monetise at an appropriate stage our enterprise business. Reliance Realty will be the engine of growth for the future of this company,” Ambani had said in reply to a question. GCX owns nearly 69,000 route km of sub-sea cables. It also owns the largest data centre in the country, located at Dhirubhai Ambani Knowledge City in Navi Mumbai, with a capacity of 40 MW.

On June 29, Reliance Home Finance, another Anil Ambani Group company, had extended the maturity of its non-convertible debentures by paying the interest to Reliance Mutual Fund, also owned by the same group.

The maturity of the debenture was extended up to October 31 on mutual consent with additional cover and coupon, the fund house had said.

Published on July 26, 2019

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