Reliance Communications defaults on US dollar bonds

Jason McGee-Abe
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Anil Ambani-backed Reliance Communications has defaulted on bond interest payments

Reliance CommunicationsThe operator reportedly missed coupons that were due on 6 November on its $300 million notes maturing in November 2020. It marks India’s most high profile default on US dollar bonds by an Indian company in a year-and-a-half since the country’s insolvency and bankruptcy code was passed in May 2016. The rules are designed to speed up debt restructurings in the country.

"The company has also announced various asset sales and a comprehensive debt resolution plan," it said in a statement. "Accordingly, for the time being, no payment of interest or principal is being made to any lenders or bondholders of RCom."

The company’s shares and bonds have fallen to record lows.