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RCom shares rise nearly 5% after debt deal with lenders

LiveMint logoLiveMint 05-06-2017 Reuters

Mumbai: Shares in India’s Reliance Communications rose as much as 4.6% in early trade on Monday after the debt-laden mobile carrier said it won a seven-month reprieve from its lenders.

The company, controlled by billionaire Anil Ambani, said on Friday it will receive a “standstill” on debt servicing obligations until December as it works on two deals that it hopes will reduce 60% of its debt.

Shares in the company were trading up 2.18% at Rs21.10 at 9.18am, while Sensex was trading at 31,203 points, down 71 points.

In the event the company is unable to complete the deals within the December deadline, lenders may exercise their right to convert their debt to equity as per the strategic debt restructuring (SDR) rules, Reliance Communications said.

Reliance Group companies have sued HT Media Ltd, Mint’s publisher, and nine others in the Bombay high court over a 2 October 2014 front-page story that they have disputed. HT Media is contesting the case.

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