Anil Ambani headed telecom company received approval from its overseas bondholders to ease the company's debt burden and helping it with its bankruptcy aversion.
Reliance Communications in an exchange filing said, "Reliance Communications Limited (RCOM) Bond holders, approved the Tender and Exchange offer of US$ 300 million Bonds with overwhelming majority of over 83%, at their meeting held today on August 24, 2018, at London. Pursuant to the Offer as approved, the Bond Holders will receive cash proceeds upto US$ 118 mn. The Bond Holders will also get US$ 55 million Bonds to be issued by Global Cloud Xchange Limited (holding Company of GCX), a foreign subsidiary of RCOM. The New Bonds of Global Cloud Xchange will be unlisted, unsecured and shall have half yearly coupon of 0.1% with maturity of four years."
The vote comes as a major relief for Anil Ambani as this was a precondition for the carrier to reorganize its larger local debt. The company has been working to settle agreements with its creditors before the deadline of 27 August, failing which, it will face insolvency proceedings.
On Thursday Rcom closed the sale of its Media Convergence Nodes (MCN) and related infrastructure to Reliance Jio.