Reliance Group chairman Anil Ambani has voluntarily announced to draw no salary from its telecom arm, Reliance Communications in FY18.
RCom in an official statement said, “The decision is part of company promoters’ commitment to strategic transformation program”. while in parallel, Reliance Communications management team onboard will defer personal pay by up to 21 days. Rcom announced that these measures would be until December 2017.
The company has defaulted on some of the payments to lenders and it has received time till December for strategic restructuring plan under which it will get a 7-month standstill to service loans amounting to Rs. 45,000 crore. Ambani has said that the debt burden will be reduced to Rs. 20,000 crore with two deals by September.
RCom said Aircel and Brookfield deals are targeted to close by September 30, 2017, subject to approvals and will reduce debt by nearly 60 per cent or about Rs. 25,000 crore.