Alarmed by share sell-off, banks look for ways to solve RCom's debt mess

Reliance Communications’ lenders have sought more information on its plan to reduce debt, in the wake of a slowing in cash flow and its shares and bonds being hit by a series of rating downgrades.

Those with equity exposure to the company have also sought the plan to manage its liquidity. Life Insurance Corporation, for instance, owns a 6.5 per cent stake.  

Bankers said with the company becoming a ‘Special Mention Account’ after failing to pay its debt instalment on time, they’d be monitoring the financial health. The meeting is being called after the recent sell-off in the company’s