Reliance Communicationsshares nosedived by a sharp 48% in the early morning trade on Monday after the company's investors reacted to news concerning its debt resolution plan. RCom aiming to resolve its debt related issues has decided to file for bankruptcy.
The communications company with a debt of over Rs. 40,000 crore took to this plan as its board was unable to get 100% approval on any of the matter from all 40 lenders. "Despite the passage of over 18 months, lenders have received zero proceeds from the proposed asset monetisation plans, and the overall debt resolution process is yet to make any headway," said RCom in a statement.
The debt resolution plan of the company will be implemented via NCLT and RCom informed the exchanges that the company will look out for fast-track debt resolution plan via National Company Law Tribunal (NCLT) in Mumbai.
The stock of Reliance Communication was last trading at Rs. 7.02, down by 39.48% on the BSE.