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Bloomberg
Bonds that Reliance Communications Ltd. defaulted on last year slumped to a seven-month low on Tuesday, after the Indian mobile operator controlled by billionaire Anil Ambani offered to repay holders at a discount to the principal value.
The firm, which is set to meet with bondholders on August 10, has been trying to close a sale of wireless assets to Reliance Jio Infocomm that would raise money to help pay creditors.
Reliance Communications’ 2020 dollar notes fell 2 cents on the dollar to 43 cents in Hong Kong, the lowest since December, according to prices compiled by Bloomberg. The securities slid 5.3 cents, the biggest decline since May.
The company said that holders of the $300 million bonds can tender their
existing notes or exchange them for $45 million new zero-coupon notes due 2023 to be issued by unit Global Cloud Xchange Ltd. A Reliance Communications spokesman wasn’t able to immediately reply to an email and call seeking comment.