RCom gets bondholders’ nod for sale of assets to Jio

Holders of debt-laden telecom operator’s $300 million bonds also approve the partial release of noteholder collateral

A commuter cycles past a kiosk with an advertisement for Reliance Communications in Mumbai on January 16, 2013. Indian mobile phone company Reliance Communications will award a $1-billion, eight-year contract to US-French telecom equipment supplier Alcatel-Lucent, the companies said Wednesday. The contract plans to deliver voice and data communication services to RCom's networks in southern and eastern India, they said in a statement. The deal, which will see nearly 4,000 RCom employees -- 15 percent of its workforce -- move to Alcatel, comes at a time when local telecom firms have been slowing down investments, amid intense competition and regulatory policy uncertainty in India, one of the world's largest telecom markets. AFP PHOTO/ INDRANIL MUKHERJEE

Reliance Communications Ltd. (RCom) said on Wednesday its bondholders had approved their asset-sale plan, that includes the sale of certain assets to upstart rival Reliance Jio Infocomm Ltd.

Holders of the debt-laden telecom operator’s $300 million bonds have also approved the monetisation of other real-estate assets, RCom said in a statement

RCom also got approval for the partial release of noteholder collateral to help the sale get underway, the company said, adding the proceeds would be used for partial redemption of notes.

Earlier this month, the company lost its appeal in the Bombay High Court against an arbitration tribunal ruling in the Ericsson case, where the Swedish company has sought payment of unpaid dues.

Wireless assets

Anil Ambani-controlled RCom got shareholders’ nod in February to sell its wireless assets to Reliance Jio, the telecom unit of Mukesh Ambani-led Reliance Industries Ltd.

RCom shares surged 8.9% to close at ₹25.20 on the BSE on Wednesday, valuing the company at ₹6,969 crore.