RCom receives bondholders approval for assets sale

RCOM signed definitive binding agreements with Reliance Jio for the sale of the Group’s wireless, spectrum, tower, fiber and media convergence node assets (the “Reliance Jio Sale”).

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Anil Ambani owned Reliance Communication said on Wednesday it has received bondholders' approval to sell certain wireless assets to Reliance Jio Infocomm and also monetization of other real estate assets.

 
RCom receives bondholders approval for assets sale

It said that the bondholders also approved a release of their security on the company's assets and to accept part prepayment of their outstanding bonds.

 

"RCOM is pleased to announce that the required majority of holders of its $300 million 6.5 percent senior secured notes due 2020 have voted in favor of approving the First Extraordinary Resolution and the Second Extraordinary Resolution at the Adjourned Meeting held today in London. Noteholders holding in aggregate 44 percent of the principal amount of outstanding Notes were present or represented at the Adjourned Meeting, with 81 percent of the votes being cast in favor of the Approved Resolutions." the telco said.

To recall, last year in December, RCOM signed definitive binding agreements with Reliance Jio for the sale of the Group's wireless, spectrum, tower, fiber and media convergence node assets (the "Reliance Jio Sale"). At the time of the announcement,
the transaction with Reliance Jio was expected to close in a phased manner in early 2018 subject to lender consent and receiving other requisite approvals. Noteholder consent was a specific prerequisite to effectuating the Reliance Jio Sale.

The deal is slated to bring relief to RCom, which is reeling under debt of around Rs 45,000 crore. Reliance Jio or its nominees will acquire assets under four categories - Towers, Optic Fiber Cable Network ("OFC"), Spectrum and Media Convergence Nodes ("MCN") from RCOM and its affiliates.

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"These assets are strategic in nature and are expected to contribute significantly to the large-scale roll-out of wireless and Fiber-to-Home and Enterprise services by RJIL," the statement said. Reliance Jio will acquire all the assets without any previous liabilities attached to them

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