RCom was once a leading telecom operator, controlled by Anil Ambani, who was once the 6th richest person globally, with a net worth of $42 billion in 2008.
Reliance Communications (RCom) reported a total financial indebtedness of Rs 40,413 crore on Saturday, October 4 which includes both short-term and long-term debt, as of September 30, according to ET Now. However, as per the RCom's filing on October 4, this amount excludes Rs 3,151 crore in interest on Non-Convertible Debentures (NCDs) and Rs 27,867 crore in accumulated interest on bank and financial institution loans.
RCom also stated in the filing that under the 2016 Insolvency and Bankruptcy Code, the company is currently going through a corporate insolvency resolution process. Additionally, the terms of the code will be followed in the settlement of the company's debts.
Anil Ambani, who had a net worth of $42 billion in 2008 and was formerly the sixth richest person in the world, is the owner of RCom, a former top telecom operator. However, the company faced financial trouble.
Anil Ambani's RCom which was the second-biggest telecom provider, was unable to withstand the price war that ensued after his older brother Mukesh Ambani introduced Reliance Jio. Since then, Anil Ambani's business has experienced financial difficulties.
In 2005, Anil Ambani's journey from financial difficulty to billionaire status started when the brothers divided Reliance's business. Anil managed finance, power, and telecommunications, while Mukesh took care of oil and petrochemicals. Even with efforts at diversification, Anil's businesses were beset by mounting debt.
Anil Ambani tried to expand throughout time in a number of industries, but the results were not what he had hoped for. In 2019, the Supreme Court issued a warning to him, stating that he would face jail time if his firm did not pay the Rs 550 crore that it owed to the Ericsson AB unit in India.
Anil Ambani was given a month by the top court to arrange the finances, but Mukesh Ambani stepped in and took care of the necessary financial preparations. Anil Ambani later worked in the entertainment and defence industries, although he had difficulties that increased his debt.
On Friday, October 4, RCom’s shares closed at Rs 2.25 on the NSE, rising 4.65% from the previous close. The company’s market capitalization stood at Rs 622.24 crore.
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