RCom discloses debt of Rs 32,575 cr

RCom was eclipsed by technology changes

Anil Ambani group’s flagship telecom company Reliance Communications Ltd said it continues to have debt in excess of Rs 32,000 cr as of last week.

It said it has total outstanding Rs 28,825 cr from banks and other financial institutions, excluding interest of Rs 6,840 crore on loans from banks and financial institutions.

It also has outstanding convertible securities (NCDs and NCRPS) of Rs 3,750 cr. In addition, Rs 1,155 cr worth of interest on NCDs is also there. The interest has not been provider in the financial statements, the company said.

It also said the dollar amounts have been converted at Rs 65.175 per dollar, instead of today’s rate of Rs 71.79.

The company, at one time, used to have as much as Rs 46,000 cr of debt.

The high debt level — resulting high interest expenses — as well as a failure to enter into 4G technology on time are blamed for the shutting down of the company’s telecom services two years ago.

Billionaire Anil Ambani had come up with a scheme in which he said he would be able to fully pay back all creditors. However, the scheme did not get acceptance from all creditors, and was eventually junked in favor of bankruptcy proceedings in front of National Company Law Tribunal.

Financial leaders alone have raised claims of close to Rs 50,000 cr in the bankruptcy proceedings. Non financial, or operational partners, have also raised claims.

In between, RCom was forced to pay around Rs 500 cr to Swedish telecom equipment and services vendor Ericsson after an adverse Supreme Court decision.

The resolution professional in charge of resolving the bankruptcy matter recently asked Ericsson to return the money and join the queue of creditors.