December 29, 2017 / 2:02 AM / a year ago

China Development Bank says talks with India's indebted RCom underway

BEIJING, Dec 29 (Reuters) - China Development Bank , a creditor of Reliance Communications Ltd, said it is in talks with the Indian wireless carrier, following a plan by the Anil Ambani-backed firm to reduce its debts.

Any progress will be disclosed in the near future, the Chinese bank told Reuters late Thursday in response to a request for comment on the Indian carrier’s debt-reduction plan.

RCom, as the Indian carrier is known, announced on Tuesday a plan to slash its debt by 390 billion rupees ($6.1 billion) underpinned by the sale of some of its spectrum, tower, fibre and real estate assets for which the company said it has already received some non-binding offers.

It was not immediately clear if all key creditors were on board.

Last month, China Development Bank initiated insolvency proceedings at India’s National Company Law Tribunal, adding that a large amount of principal and interest from RCom was overdue.

RCom had a net debt of 450 billion rupees at the end of October, putting it among India’s most indebted companies. ($1 = 64.0700 Indian rupees) (Reporting by Coco Li and Ryan Woo; Editing by Christopher Cushing)

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