Rcom share price: RCom stock tanks 17% on bankruptcy proceedings, Telecom News, ET Telecom
NEW DELHI: Reliance Communications ' stock dropped a massive 17.67% to Rs 10.25 on the Bombay Stock Exchange in early hours of trade on Wednesday morning, on the back of bankruptcy proceedings having been initiated against the company by creditor Ericsson.The Mumbai bench of the National Company Law Tribunal on Tuesday admitted three petitions filed against the telco and its subsidiaries by Swedish telecom equipment maker Ericsson under the Insolvency and Bankruptcy Code. The move made RCom the second operator, after Aircel, to be hauled through bankruptcy proceedings. Ericsson had filed the pleas to recover Rs 1,150 crore in dues.The companyâs 2020 dollar bonds fell 2.9 cents on the dollar to 58 cents as of 10.49 am in Hong Kong, according to Bloomberg-compiled prices, and is set for the biggest decline in more than seven months.The Anil Ambani owned carrier was forced to shut wireless operations in late 2017, after a merger attempt with Aircel fell through, mainly due to legal hurdles. It signed a deal with Jio in late December to sell its spectrum, towers, fibre and switching nodes for about Rs 18,000 crore, to repay lenders, but that deal too is now in jeopardy. RCom's debt stands at Rs 46,000 crore.The telco is likely to move the National Company Law Appellate Tribunal against the NCLT order, ET reported on Tuesday.