Reliance Communications Slumps 22% This Week On Dollar Bond Payment Default

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The erstwhile telecom major which has now announced to wind up its 2G business and selling its telecom towers has lost ground as much as 22% this week. The scrip lost over 5% in trade today recording day's low at Rs. 10.70.

Reliance Communications Slumps 22% This Week On Dollar Bond Payment Default

The woes for the company sees no end, first with the company erring on the loan book here in India and its loan classification being moved to SMA 1 and SMA 2 category which signify that there are probably higher chances that it can slip to the NPA category which is a great threat to the overall banking sector.

Now, the company has defaulted on dollar payments for which the timeframe expired on Monday after taking into account the provided grace period. The company failed to pay towards the coupon on 2020 dollar notes.

The biggest default by an Indian company in respect of the international debt has pushed both the company's shares and bonds down in valuation.

At 2:10 pm, the company was trading down by 8% at Rs. 10.65 on the BSE.

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