Anil Ambani owned Reliance Communications has finally revealed that the new RCom- Aircel merged entity will be called Aircom after the completion of the proposed deal.
The company also said that its lenders have agreed to a strategic restructuring plan under which it will get a 7-month to service loans amounting to Rs 45,000 crore.
It said, "lenders take note of advanced stage of implementation of strategic transactions of Wireless and Towers business for debt reduction of Rs 25,000 crore, or 60 percent."
"RCOM to also present plan for sustainable long term servicing of remaining debt of Rs 20,000 crore," it added.
To recall, Reliance Communications has reported a net loss of Rs. 1,285 crore for the year, compared to a net profit of Rs. 660 crore in the previous year due to free offers, disruptive prices and hyper competition in the telecom industry.
The company said "For the first time in over 20 years, the telecom sector registered de-growth in revenues, leading to a reduction in the Government's share in revenues, sharp drop in operating margins, accompanied by increased interest costs arising from a staggering industry debt burden, and higher depreciation and amortisation charges as a result of higher spectrum purchase costs."
"Steep declines in profitability and/or net losses have been reported for the past two-quarters by all telecom operators in the country without exception, and a couple of operators have shut down their entire operations in the country," it added.
The telco's consolidated revenues stood at Rs 4,524 crore in the fourth quarter, down 8.1percent. EBITDA stood at Rs 1,083 crore, down 10.2 percent, compared to the trailing quarter, in line with industry trends, and led by the impact of free offers, disruptive pricing and unprecedented competitive intensity in the industry, the company said.