Reliance in big debt amounting to crores, no payment to employees since October, asked to leave job voluntarily
Mumbai/Maharashtra, November 16: Reliance Communications is finally in trouble and is likely shut down its shops due to a heavy debt on the company.
The telecom company Reliance Communications has a debt of around Rs 44,300 crores and that was overcome by the price war triggered by brother Mukesh Ambani’s Jio business.
The company that is owned by Anil Ambani plans to shut down its 2G and 3G wireless operations and voice call services by 30 November. These moves were a part of its Strategic Debt Restructuring pact with its lenders that gave time until December 2018 to pay off its debt.
But only till December 2017, the company has the time to reduce the debt and if they fail to do so the lenders will take over the company and its subsidiaries management entirely.
According to various sources, around 3,000 employees are left jobless due to such high debt that needs to be paid by the company. A petition of over 2,500 signatures and a social media campaign titled #SaveRComEmployees was pushed by the employees in order to state their serious complaints against the company.
Around thousands of employees who were losing their job across RCom’s pan-India wireless operations were asked to resign for personal reasons.
There are doubts regrading the Provident Fund accounts of the outgoing employees, in some cases it’s split between two accounts from when RCom Ltd became RCom Infrastructure Ltd. While in some cases, the company is yet to deposit the full PF amount into employee accounts.
Now, the company suggested a no-loan-write-off plan, where lenders can convert Rs 7,000 crore of debt into equity for a 51% stake in the company. This plan also includes a plan to repay upto Rs 17,000 crore by monetizing spectrum or airwaves, mobile towers and fibre assets to competitors.
Reliance Communications s also planning to sell real estate across nine metro cities to repay an extra amount of Rs 10,000 crore. The company is in trouble and they should find a solution to this problem or else all the employees will be resigning from their jobs and maybe they have shut down their company.