Reliance Communications bidders add tough riders

MUMBAI: Bidders for the bankrupt Reliance CommunicationsNSE 5.56 % (RCom) have put stringent conditions with their bids, making it more difficult for lenders to strike a resolution plan in what already is a complex process due to sectoral challenges. RCom and its two subsidiaries owe Rs 86,187.58 crore to financial creditors.

The four bidders for the company are seeking immunity from the company’s inter corporate guarantees and also exemptions on the company’s liabilities to the government for fees and other payments such as spectrum. Lenders are hence expecting a long-drawn-out recovery process despite getting four bids as some of these conditions can only be given by the government.