INSIGNIA’19

PRESENTED BY:
PIYUSH AGARWAL
AYUSH AGARWALLA
 WHY ARE WE ACQUIRING
RELIANCE COMMUNICATONS?

• PRESENCE OF RESOURCES TO AID IN A PROPOSED JOINT

VENTURE WITH OUR SISTER COMPANY TATA
COMMUNICATIONS WHO WOULD RUN THEIR BUSINESS
SERVICES IN RETURN OF A SHARE OF PROFITS.
DEBT REPAYMENT PLAN

 PRIORITY PAYMENT TO ERICSSON

 OUT OF THE 550 CRORES OF DEBT AND THE DUE INTEREST TO
ERICSSON WOULD BE PAID OUT OF INCOME TAX REFUNDS LYING IN
THE BANK ACCOUNT OF RCOM THAT IS 260 CRORES WITH DUE
PERMISSION FROM OUR CONSORTIUM.
 200 CRORES ARE TO BE PAID IN ALL CASH DEAL BY OUR COMPANY
AND THE REMAINING AMOUNT WHICH INCLUDES THE DUE INTEREST
ALREADY LIES WITH THE SUPREME COURT.
 OPERATIONAL CREDITOR
 NOW AFTER COMPLIANCE OF THE SUPREME COURT ORDERS, WE
WOULD LIKE TO FULFIL THE DEMANDS OF OTHER OPERATIONAL
CREDITORS UPTO THE EXTENT OF 2/3RD OF THE TOTAL AMOUNT
OWED TO THEM THAT WOULD COME OUT OF SELLING THE TOWERS,
FIBERS AND SPECTRUM.
 FINANCIAL CREDITOR
 WE PLAN TO PAY ALL THE FINANCIAL CREDITORS OF RELIANCE
COMMUNICATIONS WITH ALL THE REMAINING PROCEEDS OF THE
ABOVE MENTIONED DEAL AND OTHER OPTIONS WOULD BE EXPLORED
IF IT COMES TO BE.
NOTE: RCOM OWES 11460 CRORES TO CHINA DEVELOPMENT BANK I.E. 37% OF RCOM TOTAL DEBT.
RESTRUCTURING OF THE
MANAGEMENT
 THE TOP LEVEL MANAGEMENT OF OUR COMPANY WILL TAKEOVER
THE BUSINESSES OF RCOM.
 THE BOARD OF DIRECTORS WILL ALSO TAKEOVER.
 PERFORMANCE ASSESSMENT OF WHOLE HUMAN RESOURCE OF THE
COMPANY.
SYNERGY

 THE LATENT RESOURCES OF OUR COMPANY WOULD BE PUT INTO

BETTER USE AND WOULD ALSO BRING HOME FUTURE SHARE OF
PROFITS.
 HELPING OUR SISTER COMPANY TATA COMMUNICATIONS EXPAND
THEIR CLIENT BASE, BUSINESS SERVICES, SERVICE PROVIDING
CAPABILITIES AND OTHER AREAS.
 UPHOLDING THE GREAT VALUE OF THE INSOLVENCY BUREAUCRACY
CODE HAS BROUGHT TO THE INDIAN ECONOMY.
 THE BUSINESSES WHO ARE THE EXISTING CUSTOMERS OF RCOM
WOULD GREATLY GAIN FROM THIS DEAL AS AN EXPERIENCED PLAYER
OF THE SECTOR THAT IS TATA COMMUNICATIONS WOULD CONTINUE
TO PROVIDE SERVICES SUCCESSFULLY.
PAYMENT FOR RESOLUTION PLAN
PROCESS

THE DUE DELEGATION OF OUR RESOLUTION PLAN PROCESS IS

STILL TO BE COMPLETED, BUT WE HAVE ARRIVED AT AN
APPROXIMATION COST OF 2 CRORES WHICH COMPRISES OF THE
FEE OF THE INSOLVENCY PROFESSIONALS’ FIRM THAT WAS HIRED
TO CREATE THE RESOLUTION PLAN AND IT ALSO COMPRISES OF
ALL THE MISCLEANNEOUS COST INCURRED IN PROCEEDING WITH
THE RESOLUTION PLAN.
SOURCES

BLOOMBERG QUINT
ECONOMIC TIMES
MONEY CONTROL
INDIA TODAY
CNBC
THANK YOU!