Company decided to opt for insolvency proceedings following its failure to sell assets for paying back its lenders.
New Delhi: Shares of Reliance Communications fell sharply on Monday, tumbling over 48 per cent, after the company decided to opt for insolvency proceedings following its failure to sell assets for paying back its lenders.
The shares of Reliance Communications, after a weak opening, further crashed 48.27 per cent to its record low of Rs 6 on the BSE. Heavy selling was also seen in other group shares, with Reliance Power cracking 29.22 per cent, Reliance Capital 19.37 per cent, Reliance Infrastructure 16.51 per cent and Reliance Naval and Engineering plunging 13.70 per cent on the BSE.
"RCom board of directors decides upon implementation of debt resolution plans through NCLT framework," the company said in a statement on Friday.
It is estimated that RCom has been reeling under debt of over Rs 46,000 crore. The board of directors of RCom on Friday reviewed the progress of the company's debt resolution plans since the invocation of strategic debt resolution on June 2, 2017.
The board noted that despite the passage of over 18 months, lenders have received zero proceeds from the proposed asset monetisation plans, and the overall debt resolution process is yet to make any headway, the statement said.
"Accordingly, the board decided that the company will seek fast track resolution through NCLT, Mumbai. The board believes this course of action will be in the best interests of all stakeholders, ensuring comprehensive debt resolution in a final, transparent and time bound manner within the prescribed 270 days," the statement said.