Photo: MintEarly last week, Reliance Communications Ltd presented a so-called ‘zero loan write-off plan’ to its lenders. Punit Garg, executive director at RCom, told Mint, “Do you think lenders can refuse a zero write-off plan? True, they aren’t exactly a proxy for all secured creditors, but their trading behaviour does provide strong clues on the extent of write-off lenders expect. With bondholders pricing in a 60% write-off on their investment, it’s safe to say that the assumptions behind RCom’s zero write-off plan are extremely generous. The new look RCom would service the remaining debt of around Rs6,000 crore using cash flows of the remaining business.

Source: Mint November 08, 2017 07:52 UTC