RCom surges 3 per cent over talks with CBD for debt settlement

Reliance Communications (RCom) was trading in green on Thursday after the news that the company was negotiating a settlement with China Development Bank (CBD).

China Development Bank is one of the largest creditors of RCom with dues of $1.78 billion or about Rs. 11,460 crore. The bank accounts for 37.11 per cent of RCom’s total secured debt.

The debt-laden telecom operator is battling multiple insolvency cases. The bank moved NCLT in November against both RCom, the guarantor and its subsidiary Reliance Telecom, the principal borrower. The China-based bank was among the first lenders to take the telecom operator to the bankruptcy court.

At 11:42 hours, Reliance Communications was trading at Rs. 11.00, up Rs 0.25 or 2.33 per cent on NSE. The scrip opened at Rs 10.80 and touched a high and low of Rs 11.15 and 10.80, respectively. The stock attracted a traded volume of  2,23,97,472 shares on NSE. The market capitalisation of the company stands at around Rs. 3,061 crore. The stock was at its peak of Rs. 800 in January 2008 and has been on a downward trend since then.