Debt-laden Reliance Communications today said as many as 31 lenders, both foreign and Indian, have decided to oppose China Development Bank's CDB) insolvency petition against the company.
The lenders have also decided to appoint J Sagar Associates as their legal counsel to resist the said CDB petition at the admission stage itself, RCom said in a BSE filing.
"At a Committee of Creditors meeting on 29 November 2017, a majority of Reliance Communications' lenders, foreign and Indian, aggregating 31, decided to oppose China Development Bank's (CDB) Insolvency Petition against RCOM before the National Company Law Tribunal, Mumbai," the company's spokesperson said in the filing.
RCom, owned by Anil Ambani, is reeling under Rs 44,300 crore debt burden and has announced part shutdown of its operations (2G and 3G mobile telephony business).
To tide over the problem, the company has presented what it calls a 'no-loan write-off' plan where lenders are to convert Rs 7,000 crore of debt into equity.
The 'no-loan write-off' plan also involves repaying of up to Rs 17,000 crore loans out of proceeds from monetisation of spectrum, tower and fibre assets.
An additional Rs 10,000 crore would be paid by selling real estate in the Dhirubhai Ambani Knowledge City in Mumbai and other properties across eight metros.
Earlier this month, Moody's Investors Service said it has withdrawn Reliance Communications' corporate family rating, citing a missed scheduled payment related to the company's dollar bond.
The company had clarified that it is not paying interest or principal amount for the time being to any lender or its bondholders in view of the strategic debt restructuring scheme and debt standstill period till December 2018.
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