RCom's insolvency jeopardises $3.7 bn deal; shares and bonds tumble

Shares and bonds of Reliance Communications Ltd. tumbled after an Indian tribunal ordered that the wireless carrier be placed in insolvency proceedings, jeopardizing its proposed $3.7 billion asset sale to Reliance Jio Infocomm Ltd.

Shares of RCom, as the company is known, dropped as much as 9.7 percent on Wednesday in Mumbai, while its 2020 dollar bonds plummeted the most in more than seven months. The Mumbai bench of the National Company Law Tribunal on Tuesday accepted a petition from the Indian unit of network-equipment maker Ericsson AB, which is seeking to recover 11.6 billion rupees ($170 million) in unpaid dues