Reliance Communications Ltd., the company controlled by Indian billionaire Anil Ambani is in the midst of restructuring the $300 million U.S. currency notes and plans to meet those bondholders on Aug. 24 to seek approval on extraordinary resolutions, Bloomberg News reported. Those talks come ahead of a Aug. 27 deadline set by the India’s central bank for firms with delinquent accounts and under other conditions to implement resolution plans with local lenders to stave off insolvency proceedings. The timing is tight for Reliance Communications. Its onshore lenders will agree to a restructuring only if they know that the dollar bonds are also being restructured, in line with so-called inter-conditional agreements on debt. The outcome of the talks this month may sway how much the company’s debt holders will get repaid in the end. India’s large delinquent borrowers face an Aug. 27 deadline to put in place a resolution plan, as the nation’s regulator pushes its lenders to recast and clean up $210 billion of bad loans in their balance sheets. Reliance Communications’ default was India’s most high-profile one on international debt since the nation’s insolvency and bankruptcy code was passed in May 2016, and its debt talks are being closely watched.
