RCom's lifeline deal with Aircel called off

Anil Ambani company to sell spectrum

Reliance Communications (RCom) has called off its merger with Aircel, owned by Maxis of Malaysia, following legal and regulatory hurdles, putting a question mark on the company’s promise to its lenders to reduce its debt burden of Rs 45,733 crore by the end of December.

With the deal falling through, the lenders, led by a consortium of banks, now have the option of converting their loans into equity by the end of the year and take up to a 51 per cent stake in the company. 

However, RCom has offered an alternative plan to reduce its debt by around Rs 28,500 crore.