RCom drops by 3 per cent as Ericsson files insolvency case

The shares of debt laden mobile carrier Reliance Communications saw a fall in its stock price on the exchanges on Thursday as the Ericsson India filed an insolvency case against the company and two of its units to recover unpaid debts, as clarified by RCom in a regulatory filing on Wednesday.

Ericsson India has filed the insolvency case against the company before the National Company Law Tribunal (NCLT) in Mumbai, for the recovery of dues worth Rs 1154 crore from RCom and its subsidiaries Reliance Infratel Limited and Reliance Telecom Limited.   

The stock fell by nearly 3 per cent on Thursday, touching an intraday low of Rs 21.15 per share. The share hit an intraday high of Rs 21.75 per share and was trading at Rs 21.25 per share, down by 2.52 per cent on the BSE on Thursday. The stock had hit its 52-week high of Rs 53 per share on September 15, 2016 and its 52-week low of Rs 17.80 per share on June 14, 2017, respectively.

RCom led by Anil Ambani has received a seven month loan reprieve from its lenders while the company has been working on its two asset sale deals expecting to reduce its USD 7 billion debt by nearly 60 per cent.