Global Cloud Xchange (GCX), a subsidiary of Reliance Communications (RCom) and one of the largest undersea cable firm has filed for bankruptcy .

The bankruptcy filing by the Delaware based happened on Sunday after the Rcom unit failed to pay on its $350 million on 7% bonds that matured in the beginning of August .

“There were lot of discussions between the members of Committee of Creditors of RCom and the bond holders if the latter could hold back , but looks like those talks failed ,” said a person aware of the developments .

RCom and its units -Reliance Telecom and Reliance Infrastructure, under a debt of Rs 46,000 crore is undergoing insolvency process . The bankruptcy court has appointed Deloitte as its resolution professional and so far around 12-14 expressions of interest have come in for its assets .

RCom in May this year had mentioned that GCX’s value was eroding.

“In GCX Limited, an overseas subsidiary of the Company, pursuant to 7% Senior Secondary Notes …amounting to $350 million falling due for repayment in the month of August 2019, the current liabilities exceed current assets by $331 million,” said the bankrupt telco in its filing in May.

“This indicates the existence of material uncertainty relating to growing concern of GCX Limited and its two material subsidiaries which have guaranteed the Notes. In three other overseas subsidiaries entities also, it indicates the existence of material uncertainty as networth has been eroded,” it had then added .





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