Shares of Reliance Communications (RCOM) spike over 6 percent and hit their upper circuit (Re 0.80 on NSE and Re 0.69 on BSE) on November 25, 2019 on the news that Reliance Industries, Bharti Airtel and three others may bid for the assets of the debt-ridden company.
The last date to submit bids is November 25 and RCOM committee of creditors will also meet the same day to open bids.
As per news, Varde Partners and UV Asset Reconstruction Company are also among the contenders for RCom?s assets. Reliance Industries will submit its bid through its subsidiary.
RCom’s secured debt is estimated to be around Rs 33,000 crore. Lenders have submitted claims of around Rs 49,000 crore in August. As per NCLT order, the resolution professional has to complete the process by January 10, 2020.
Reliance Communications chairman Anil Ambani along with four directors tendered their resignation after the company posted a consolidated loss of Rs 30,142 crore for July- september 2019 due to provisioning for liabilities after the Supreme Court ruling on statutory dues. But its lenders have rejected the resignation of Chairman and four other directors, and asked them to cooperate in the ongoing corporate insolvency resolution process.