Reliance Communications shares rise after debt deal with lenders
MUMBAI Shares in India’s Reliance Communications rose as much as 4.6 percent in early trade on Monday after the debt-laden mobile carrier said it won a seven month reprieve from its lenders.
The company, controlled by billionaire Anil Ambani, said on Friday it will receive a “standstill” on debt servicing obligations until December as it works on two deals that it hopes will reduce 60 percent of its debt.
Shares in the company were trading up 2.18 percent at 21.10 rupees at 0348 GMT.
In the event the company is unable to complete the deals within the December deadline, lenders may exercise their right to convert their debt to equity as per the strategic debt restructuring (SDR) rules, Reliance Communications said.
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