In early trade on Monday morning, debt-laden Reliance Communications Ltd sank by more than half to a record low after the company filed in for fast-track resolution through the bankruptcy court, National Company Law Tribunal to resolve its indebtedness.
On Friday RCom which is controlled by Mr. Anil Ambani said that its lenders have not received any proceeds from the liqification of the assets and also that the overall debt resolution process had not made any progress.
A cut-throat competition in India's telecom industry since the entry of Reliance Jio which is owned by Anil Ambani's elder brother Mr. Mukesh Ambani, is one of the main reasons that has triggered RCom to shut down its business. RCom owed a total of $7 billion as of March 2017 when its debt level were last made public.
The stock fell down as much as 54.3% on Monday in Mumbai trading. More than 120 million shares of RCom changed hands in less than 45 minutes.