Reliance Communications will not pay Nov 6 interest due on 6.5% senior notes due 2020

RELIANCE Communications does not intend to pay the interest due on Tuesday for certain senior notes, the firm said in a letter on the same day to the Singapore Exchange.

It cited resolutions from a bondholders' meeting in August, which approved the stopping of interest accrual on the US$300 million senior secured 6.5 per cent notes due 2020.

Bondholders had said yes to an optional redemption of the notes and/or swopping them for US$55 million 0.1 per cent senior notes due 2022 issued by subsidiary Global Cloud Xchange, it noted. 

The debt-hit Indian mobile operator added that the company "is working expeditiously" to wrap up the sale of the wireless spectrum, tower, fibre and media convergence node assets.

Some of the proceeds from the sale are slated to be used on partially redeeming the 6.5 per cent notes, in line with the bondholder resolutions.