Lenders reluctant to convert RCom shares at a premium

Bankers said they had taken note of the collapse of the Reliance Communications-Aircel merger deal, which would increase stress on the company

Lenders saddled with Rs 45,000 crore of Reliance Communications’ debt are not keen to convert it at the higher price announced by the company earlier to its shareholders because the current market price is far below the conversion price. Taking this price into account, the lenders are supposed to convert their debt in lieu of a 51 per cent stake in the company at a total equity valuation of Rs 6,150 crore as compared with the current market value of Rs 4,306 crore. 
 
According to a notice to its shareholders, Reliance Communications’ lenders are to convert their debt into