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Bloomberg
Reliance Communications Ltd., the embattled mobile phone operator controlled by Anil Ambani, slid to record lows in the stock and bond market after saying over the weekend that it missed local debt interest payments.
The company’s stock fell by as much as 14 percent to its lowest ever. Its dollar bond due 2020 dropped 1.3 cents to a record low of 35.9 cents on the dollar as of 1:10 pm in Hong Kong.
Reliance Communications (RCom) is battling for survival amid a shakeout in the world’s second-largest telecom market, and failed to pay interest on both international and local bonds this month. A grace period ended on a $9.75 million interest payment that was due on November 6 for its 2020 dollar notes, Bloomberg-compiled data show. The company said that it also missed payments due in November on two rupee-denominated securities and that it is in a standstill period for interest and principal repayments until December 2018.
Intense price competition has driven down earnings as larger mobile companies vie for market share. RCom reported a net loss of $415 million for the quarter ended on September 30.