The move comes as GCX missed repayments on $350m bonds
GCX Ltd, the subsea cabling subsidiary of Anil Ambani’s Reliance Communications (RCom) conglomerate, has announced that it is to file for bankruptcy.
The move comes after GCX missed payments of around $350 million, according to a report by Bloomberg.
GCX owns and operates the word’s largest private subsea telecommunications cable and its decision to file for bankruptcy will send shockwaves through the subsea industry.
India’s telecoms market remains one of the world’s most competitive, with telcos battling against wafer thin margins, plummeting ARPUs and rising costs. Analysts speculate that the industry could see further applications for bankruptcy in both its terrestrial and subsea sectors in the coming 12 to 18 months.
RCom has already pledged to raise around $3.1 billion through the sale of non-core assets to alleviate its crippling levels of debt.
Earlier this year, Ambani narrowly avoided jail, as Swedish kit manufacturer, Ericsson, took him to court over unpaid dues of $77 million. Ambani eventually agreed to settle RCom’s dues and avoided jail.
You can keep up to date with all the latest developments from the subsea sector by visiting the Submarine Networks EMEA website. Click here for full details.
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