Anil Ambani group of companies are all down in the red today morning, led by Rcom, went down 48% to Rs.6, a new 52-week low. Reliance Power is the second top loser, going down 26% to Rs.19.55; Reliance Capital is the third loser, down over 15%; all ADAG stocks are at a new low today.
The entire ADAG stocks have fallen like nine pins after the company, yesterday, stated that it will file for insolvency as it has been unable to sell assets and repay about $6.3 billion debt.
The Board noted that, despite the passage of over 18 months, lenders have received zero proceeds from the proposed asset monetization plans, and the overall debt resolution process is yet to make any headway. This unfortunate outcome is attributable to the following key unresolved challenges:
§ Lack of 100% approvals and consensus, as mandated by RBI’s 12th February 2018 circular, on all important issues, amongst over 40 lenders, Indian and foreign despite the passage of 12 months and over 45 meetings
§ Pendency of numerous legal issues at High Courts, TDSAT and Supreme Court impeding progress at various stages
The Board of Rcom believes that 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 company, in the Press Release said, “ Untenable issues raised by Department of Telecommunications that frustrated the existing plan can now be addressed under the NCLT process.”
The company sees substantial unsustainable debt extinguished under the bankruptcy process.