Reliance Communications unit GCX files for bankruptcy

Photo: Bloomberg

A unit of Reliance Communications Ltd., Anil Ambani’s distressed telecom firm, has filed for bankruptcy protection.

GCX Ltd., which owns the world’s largest private undersea cable system, is the latest company owned by the tycoon to stumble. The former billionaire’s Reliance Communications 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 Aug. 1.

Ambani has been waging a war on debt, and Reliance Group has said that it planned to raise about 217 billion rupees ($3.1 billion) by selling assets from roads to radio stations in a bid to cut borrowings.

India has been grappling with the world’s worst bad-loan mess, and a deepening shadow-banking crisis and hurdles in bankruptcy rules are set to prolong that struggle.

Reliance Naval & Engineering Ltd., 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 said in July that it had reached a forbearance pact with holders that provided additional time to discuss options related to the maturity of its bonds. Moody’s Investors Service cut its rating on the firm to Ca last month, as it considered the missed payment on the $350 million bonds a default.

GCX along with other associates filed for Chapter 11 bankruptcy protection at the Delaware court, according to a court filing.

Bloomberg

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In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

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  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.