Reliance Communications (RCOM) is taking rapid steps to improve its financial position. According to news reports, the operator is in discussions with domestic lenders to raise Rs 65 billion, which it will have to repay over seven years.
It is believed that the operator will utilise these funds to cover operating expenses, capital expenditure and converting short-term loans into long-term ones.
Further, as per news reports, the State Bank of India has agreed to lend the company approximately Rs 16.50 billion and RCOM is in discussions with other banks to raise the balance amount.
Prior to this, to raise funds, RCOM has been negotiating with potential investors to offload Reliance Infratel, its tower and passive infrastructure arm, and Reliance Globalcom, its overseas cable arm. However, these deals are yet to come through. It is believed that the operator is also holding talks with Reliance Industries for offloading stake in Reliance Infratel.
