Reliance Communications Shares Sink on Missed Debt Repayments

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Shares and bonds in Reliance Communications, the struggling telecoms group run by billionaire tycoon Anil Ambani, plummeted to record lows on Monday after the company announced heavy losses over the weekend and confirmed it had missed debt repayments, the Financial Times reported. RCom said on Saturday that it had lost Rs28.2bn ($431m) before tax in the three months to the end of September, having lost Rs1.2bn in the same quarter last year. It also confirmed it had missed two rupee-denominated bond repayments in recent weeks, having entered a formal debt restructuring two weeks ago. The company’s shares fell 11.7 per cent on Monday morning to their lowest level of Rs11.40. A dollar-denominated bond due in 2020 fell 3.5 per cent to 35.9 cents. RCom has been struggling ever since Mr Ambani’s older brother Mukesh joined the market last year with the launch of low-cost rival Reliance Jio, triggering a price war. Jio has eaten its rivals’ market share by offering free service promotions, driving down profit margins and forcing a wave of consolidation. Read more. (Subscription required.)