Anil Ambani & 4 More Resign as Directors of Reliance Communication

Former chairman of Reliance Communications, Anil Ambani.

(Photo: Reuters)

Anil Ambani has resigned as director of Reliance Communications, the debt-ridden company said in a filing on Saturday, 16 November. According to the filing, Ambani along with Chhaya Virani, Ryna Karani, Manjari Kacker, Suresh Rangachar have resigned as directors of RCom.

“Your good office may also note that Shri Manikantan V, has also tendered his resignation as a director and Chief Financial Officer of the Company earlier. The aforementioned resignations shall be put up to the committee of creditors of the Company for their consideration.”

The filing

RCom, which is currently going through insolvency process, has posted a consolidated loss of Rs 30,142 crore for July-September 2019 due to provisioning for liabilities after the Supreme Court ruling on statutory dues.

According to Moneycontrol, Ambani, Virani and Kacker tendered their resignations on Friday 15 November, while Karani tendered her resignation of Thursday 14 November; Sunil Rangachar tendered his resignation on Wednesday, 13 November.

Meanwhile the company has proposed the replacement of Manikantan V who resigned on 4 October, with D Vishwanath as executive director and CFO respectively, before the committee of creditors (COC) for their approval, as the company has fallen under the purview of Corporate Insolvency Resolution Process (CIRP) .

RCom has stated that once the COC approves, further disclosures will be made to the public.

The company is facing severe financial stress as it reported a consolidated net loss at Rs 30,158 crore in Q2FY20 (including an exceptional loss of Rs 1,250 crore) on 15 November against loss of Rs 366 crore in Q1FY20 .

Meanwhile its share further plummeted to Rs 0.59, down Rs 0.02, or 3.28 percent on 15 November; Rcom had already reached a 52-week low of Rs 0.58.

(With inputs from PTI and Moneycontrol)