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Wednesday, December 11, 2019

Lenders reject resignations of Anil Ambani, four other RCom directors

In a BSE filing, RCom said its Committee of Creditors (CoC) met on November 20 and expressed a unanimous view that the resignations of the directors cannot be accepted.

By: ENS Economic Bureau | Mumbai | Updated: November 25, 2019 1:03:12 am
Anil Ambani claims to have paid Rs 35,000 cr to lenders in past 14 months Reliance Communication (RCom) Chairman Anil Ambani

Lenders have rejected the resignations of Reliance Communication (RCom) Chairman Anil Ambani and four other directors and asked them to cooperate in the ongoing corporate insolvency resolution process. Ambani, along with Ryna Karani, Chhaya Virani, Manjari Kacker and Suresh Rangachar, had resigned from RCom earlier this month.

In a BSE filing, RCom said its Committee of Creditors (CoC) met on November 20 and expressed a unanimous view that the resignations of the directors cannot be accepted.

“It is being duly communicated to the aforesaid directors of RCom that their resignations have not been accepted and they are advised to continue to perform their duties and responsibilities as the directors of RCom and provide all cooperation to Resolution Professional in the corporate insolvency resolution process,” the filing said.

RCom had posted a consolidated loss of Rs 30,142 crore for September 2019 quarter, due to provisioning for liabilities after the Supreme Court ruling on statutory dues.

This marked the second-highest loss posted by any Indian corporate till date, after Vodafone Idea posted a loss of Rs 50,922 crore for the quarter.

During July-September 2019, RCom set aside Rs 28,314 crore on account of provisioning following the Supreme Court order on calculation of annual adjusted gross revenue (AGR) of telecom companies.

As on March 31, 2019, the company had total assets of Rs 67,558 crore.

Stakeholders’ equity was negative (-) Rs 4,180 crore, while net debt (i.e. net of excluding cash and cash equivalents) was Rs 46,659 crore, giving a net debt to equity ratio of (11.16) times. RCom shares closed at Rs 0.66 on the BSE on Friday.

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