RCom bonds drop to 7-month low after offer to repay holders at a discount

RCom bonds due 2020 decline to lowest since December

Bonds that Reliance Communications Ltd. defaulted on last year slumped to a seven-month low on Tuesday, after the Indian mobile operator controlled by billionaire Anil Ambani offered to repay holders at a discount to the principal value.

The firm, which is set to meet with bondholders on Aug. 10, has been trying to close a sale of wireless assets to Reliance Jio Infocomm Ltd. that would raise money to help pay creditors.

Reliance Communications’ 2020 dollar notes fell 2 cents on the dollar to 43 cents as of 6:00 p.m. in Hong Kong, the lowest since December, according to prices compiled by