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Anil Ambani-led Reliance Group not to draw salary or commission from RCOM
By: Reliance Group
Not only that, RCOMs management team will also delay taking monthly payments by up to 21days each month until December 2017. The decision showcases its managers' commitment to the strategic transformation program. The telecom company will also sell assets to raise funds to pay off its debt, which stood at Rs45,000 crore at March-end.
"Aircel and Brookfield deals are targeted to close by September 30, subject to approvals" statement given by RCOM spokesperson. Closure of these deals would reduce the debt of RCOM by 60%, which is Rs25,000 crore.
The Union Cabinet may also consider Canada-based Brookfield Infrastructure Partners' Rs 11,000-crore investment proposal to acquire RCom's stake in its telecom tower unit Reliance Infratel.
RCOM is also positive about reducing its debt by Rs14,000 crore from its wireless merger with Aircel. Chairman Anil Ambani has said that if the company finds its outstanding debt unsustainable despite the sale of towers and the Aircel deal, it may consider offloading the remaining overseas business held under the Global Cloud Exchange banner. This comprises undersea cables or some of its 50% in Aircom — the JV with Aircel. In the case of emergency, they can also consider selling its remaining 49% economic interest in the tower arm.
Reference Link: http://www.businessinsider.in/
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