While the problems at Reliance Communications highlight the dangers of investing in Indian companies with high debt, a successful restructuring process could ultimately make the country more attractive for investors. The last Indian dollar bond default was Rolta India Ltd, which failed to honour an obligation in August 2016. Reliance Communications reiterated on Saturday that a standstill period for interest and principal repayments continues until December 2018. The company has proposed a debt resolution plan to lenders that includes lenders converting part of their debt to equity. While the problems at Reliance Communications highlight the dangers of investing in Indian companies with high debt, a successful restructuring process could ultimately make the country more attractive for investors.

Source: Mint November 14, 2017 07:07 UTC