Bondholders on par with lenders: RCom

RCom got to this point after years of ballooning borrowing and over-spending finally caught up with it

Reliance Communications (RCom), which earlier this month defaulted on dollar notes, told bondholders that they would be treated the same as bank lenders in terms of their ability to recover funds, according to Citigroup Inc. 

The mobile phone operator controlled by billionaire Anil Ambani, whose failure to pay interest on the dollar notes comes as a high-profile test of India’s new bankruptcy laws, held the call on Monday, Citigroup said in a note to clients dated November 28. 

That came amid news that China Development Bank was said to have asked an Indian tribunal to place the company, also known as RCom,