MUMBAI: Reliance Communications on Thursday said majority of its lenders have decided to oppose China Development Bank’s insolvency filing to recover its $1.78 billion, but bankers that ET spoke with said the laws do not support such a move. Local lenders to the Anil Ambaniowned telco, however, are open to inviting the Chinese bank for a dialogue, said three bankers familiar with the developments. Thursday was the last day for its 2G services and for its related employees while 3G is expected to drag for a few more weeks. The telco has said it will look to continue its operations as a 4G mobile virtual network operator.After the failure of its Aircel and Brookfield deals last month, RCom applied for a fresh “zero write-off” plan to its lenders, under which banks could convert some debt and take 51% stake in the telecom operator. Banks could then raise funds by selling the telco’s towers and spectrum to potential buyers including Reliance Jio, and monetise its real estate assets.According to estimates, of the total debt, the joint lenders forum (JLF) could convert Rs 7,000 crore into equity; raise Rs 17,000 crore through sale of assets such as telecom towers and spectrum, and Rs 10,000 crore via sale of real estate.

Source: Economic Times November 30, 2017 12:19 UTC