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RCom shares slide after reports of CDB pursuing insolvency case against it

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Reuters MUMBAI
Last Updated : Nov 28 2017 | 11:35 AM IST

MUMBAI (Reuters) - Reliance Communications Ltd's shares fell sharply on Tuesday morning after media reported that China Development Bank was pursuing insolvency proceedings against the company.

China Development Bank (CDB) filed an insolvency petition against Reliance Communications to the National Company Law Tribunal to recover about 114.6 billion rupees ($1.8 billion), reports from ET Now and other media said late on Monday.

RCom said in a statement that it had not yet been served with any notice of the application from CDB.

The company also said it remains engaged with all lenders including CDB and was confident and committed to a debt restructuring plan with the support of all its lenders.

The shares in the company were trading down 4.1 percent in morning trade after having fallen as much as 9.4 percent earlier in the day.

CDB declined immediate comment.

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($1 = 64.4100 Indian rupees)

(Reporting by Swati Bhat; Editing by Edwina Gibbs)

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First Published: Nov 28 2017 | 11:26 AM IST

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