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The circling sharks are starting to nibble at Reliance Communications

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Gerald Hurtado
Nov 29, 2017 12:45
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The problems at Reliance Communications are starting to become very well known, and it would appear one of its creditors has finally lost faith in the struggling telco.

According to the Financial Times, the Indian telco has been hit with an insolvency petition from its largest creditor China Development Bank.

It is another heavy blow after a couple of months which has seen it lose market share, revenues plummeting under intense pricing pressure and share price dropping drastically.

CEO Anil Ambani is certainly the brother feeling the sharp end of the stick.

For those who are not knee-deep in financial terms, an insolvency petition is essentially a creditor asking a court for a winding-up order.

Should the petition be successful, the court will place the company into what is called compulsory liquidation.

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Gerald Hurtado
Nov 29, 2017 12:45
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