Reliance Communications Unit Seeks Extension as Dollar Bond Due

(Bloomberg) -- A unit of Reliance Communications Ltd., tycoon Anil Ambani’s distressed telecom firm, is seeking an extension from holders of its dollar-denominated bonds maturing Aug. 1, the company’s spokesman said.

Global Cloud Xchange is in discussions with holders of its 7% $350 million notes for a deal that would provide the issuer more time to discuss options on the maturity of the senior secured notes, the spokesman said in a statement. The move to seek a forbearance pact with investors follows the failure of a deal with a prospective lender to arrange a private loan for repaying the notes at par on maturity.

GCX’s attempts for a pact with bondholders comes on the heels of Suzlon Energy Ltd., an Indian wind-turbine maker, missing repayment of $172 million outstanding convertible notes last week. Rising defaults by domestic companies add to cracks in India’s credit markets that have worsened since the crisis at IL&FS Group last year. Parent RCom, which slid into bankruptcy earlier this year, is seeking to find buyers for its assets to repay debt.

Read about Chinese lenders demanding at least $2.1 billion from Rcom

“In parallel, GCX is also continuing with its contingency planning,” the spokesman said.

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