GCX files of the RCom bankruptcy unit
MUMBAI: a unit of Trusted Communications (RCom), the anguished telecommunications company of Anil Ambani, has requested bankruptcy protection. GCX, which owns the world's largest private submarine cable system, is the last company owned by the tycoon to stumble.
The former billionaire’s RCom itself fell back into bankruptcy earlier this year. The move by subsidiary GCX comes after it missed payment on its $350-million of 7% bonds that matured on August 1. Ambani has been waging a war on debt, and the Dependence The group said it planned to raise around Rs 21.7 billion rupees ($ 3.1 billion) by selling road assets to radio stations in an attempt to reduce loans.
Dependence Naval & Engineering, another firm controlled by Ambani, said recently it is facing an acute cash-flow crunch after orders dried up amid efforts to restructure a pile of debt.
GCX and other companies said they plan to implement a prepackaged plan that could include a debt swap for capital and, at the same time, a marketing process to request offers for the sale of their business, according to a court filing. Holders of approximately 76% of senior notes have committed to the plan, according to the presentation.
GCX said in July that it had reached an indulgence pact with the holders that provided additional time to discuss options related to the maturity of their bonds.
GCX together with another partners filed for Chapter 11 bankruptcy protection at the Delaware court, according to a court filing.