Reliance Communications (RCom) has announced a new resolution plan for reducing its debt by up to Rs.39,000 crore via prepayment and form a new RCom with debt levels under Rs.6,000 crore.

The resolution plan includes exiting strategic debt restructuring (SDR) and monetizing some of the company’s assets, including transfer of spectrum liabilities by March 2018.

The asset monetization plan involves sale of wireless, tower and fibre portfolios, mobile switching nodes and real estate, and the entire process was completed in record time of 49 days.

According to Anil Ambani, chairman of Anil Dhirubhai Ambani Group stated that, the resolution plan is an all-cash deal and involves no conversion of debt to equity and will have zero write-offs to lenders and the deal transactions will aim to complete full and final closure in a phased manner between January and March 2018.

Furthermore, the new RCom will be a B2B company and will have undersea cable business and 4G spectrum sharing with Jio.

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