Mumbai: Lenders to Reliance Communication Ltd (RCom) have convened a meeting on Friday to discuss restructuring proposals for the debt-ridden telecom firm, said two bankers directly involved in discussions. On Thursday, ratings agency Fitch said some kind of default is a real possibility, while cutting RComs debt rating to junk status.
The restructuring proposals could look at all available recast tools like corporate debt restructuring (CDR), strategic debt restructuring (SDR) and Scheme for Sustainable Structuring of Stressed Assets (S4A), said one banker on condition of anonymity.
Under SDR, banks have the ability to convert part of their debt in a stressed company to 51% equity, allowing them to take operational control …
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