New Delhi : Reliance Communications Chairman Anil Ambani will not take any salary or commission in the current financial year as the company is reeling under huge debt and credit downgrades.
The top management of the company has also decided to defer their personal pay by 21 days till the end of this year.
“Chairman, Reliance Group, Anil D Ambani voluntarily decides to draw no salary or commission from RCom in current financial year,” RCom said.
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 seven-month standstill to service loans amounting to Rs 45,000 crore.
RCom has been losing customers due to stiff competition in the market. The company has lost over 20 million mobile customers in about a year. Rating firms Fitch, ICRA and Moody’s have downgraded RCom’s credit rating.
Fitch downgraded RCom to the lowest category with some hope for recovery of principal or interest amount while Moody’s Investors Service downgraded the firm to the second lowest category. Moody’s downgraded RCom corporate family rating and senior secured bond rating to Ca from Caa1 with negative outlook.
Credit rating indicates capability of a company to pay back debt. Moody’s rate firms in nine categories ranging from Aaa to C.