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Tag: bankruptcy

  • Reliance Communications comprehensive loses amount to Rs 2,068 crore in Q3

    Reliance Communications comprehensive loses amount to Rs 2,068 crore in Q3

    MUMBAI: Reliance Communications Ltd (RCom.), once a dominant force in the Indian telecom sector, continues its painful spiral into financial oblivion. The latest Q3 FY25 results make for grim reading, with deepening losses, shrinking revenues, and an insolvency process that looks more like a never-ending courtroom drama. The company, under corporate insolvency resolution since 2019, posted a staggering net loss of Rs 2,068 crore for the quarter ending 31 December 2024, further extending its financial nightmare.

    But is there a miracle in sight? Or is RCom. doomed to be a cautionary tale in corporate history?

    Standalone Results

    RCom.’s revenue from operations in Q3 FY25 stood at Rs 65 crore, marginally slipping from Rs 66 crore in the previous quarter. Compared to Rs 71 crore in the same period last year, the company seems to be on a never-ending treadmill-moving, but going nowhere. The nine-month revenue isn’t offering much comfort either, standing at Rs 206 crore, a dip from Rs 220 crore in FY24. With operations at a standstill and no meaningful revenue streams, RCom.’s survival depends on asset monetisation. However, that process has been moving at the pace of a turtle on vacation.

    Consolidated Results

    RCom.’s financials for Q3 reveal a disaster unfolding in slow motion. If numbers could scream, these would be deafening.

    RCom.’s profit after tax (PAT) might as well be renamed loss after tax, as it posted a net loss of Rs 2323 crore for Q3 and a whopping Rs 6779 crore for the nine-month period. The losses are on autopilot, and there’s no emergency landing in sight. The EBITDA situation? Let’s just say it stands for “Empty Bucket DA”. There’s no sign of improvement, and the company continues to hemorrhage cash.

    Revenue from operations came in at Rs 87 crore for Q3, which, in telecom terms, is barely enough to keep the call centers running. The nine-month revenue stands at Rs 272 crore, proving that RCom.’s once-mighty earnings have taken a permanent vacation.

    If you’re an RCom. shareholder, consider looking away. The earnings per share (EPS) before exceptional items was (Rs 8.67) per share for Q3 and (Rs 25.10) per share for the nine-month period. After exceptional items? Let’s not even go there.

    To top it all off, the comprehensive loss for Q3 stood at Rs 2,373 crore, ballooning to Rs 6,878 crore for the nine-month period-because apparently, one kind of loss just wasn’t enough.

    The financial report reads less like a balance sheet and more like a horror novel. With no operational revenue and a debt mountain that refuses to shrink, the road ahead is looking rockier than ever.

    Discontinued Operations

    RCom.’s discontinued operations, including its wireless spectrum, towers, fibre, and media convergence nodes, continue to be the financial equivalent of quicksand. Despite being classified as “held for sale” since 2018, these assets remain unsold, haunting the company’s balance sheet like a ghost that refuses to be exorcised.

    The real horror story lies in the discontinued operations segment, where the company booked a massive provision of Rs 1,840 crore towards license and spectrum fees, sending the total net loss soaring to Rs 2,068 crore. For the nine-month period, RCom.’s total losses ballooned to Rs 6,012 crore, with discontinued operations contributing Rs 5,874 crore in losses. If you’re looking for signs of improvement, well, there aren’t any-the loss for the same period last year was Rs 6,232 crore.

    The segment’s revenue was a pathetic Rs 3 crore, against expenses of Rs 160 crore, leading to a Rs 156 crore loss. Making matters worse, the company has not accounted for interest on loans amounting to Rs 1,327 crore for Q3, further distorting its actual financial position.

    Debt and Insolvency

    RCom.’s financial position is about as stable as a house of cards in a hurricane. The company has defaulted on both interest and principal payments for years. Its total debts now exceed total assets, with a debt-to-assets ratio of 1.02. Net worth? Completely wiped out, standing at a shocking negative Rs 68,490 crore as of December 31, 2024.

    The insolvency resolution process remains stuck in legal limbo, with creditors desperately waiting for some sort of recovery. But with Supreme Court and NCLT hearings stretching on indefinitely, they might be waiting for a long, long time.

    Segment-wise performance

    . Telecom services: With just Rs 65 crore in revenue, the core business has all but collapsed. The segment continues to operate at a loss, and there’s no revival plan in sight.

    . Infrastructure and enterprise solutions: This segment is in hibernation mode, waiting for the insolvency proceedings to play out.

    .  Discontinued operations: The spectrum, towers, and fibre assets remain stranded, with no buyers in sight, making them a financial black hole.

    With no revenue growth, no operational revival, and mounting liabilities, RCom.’s future looks about as promising as a sinking ship without a lifeboat. The resolution process remains entangled in legal battles, and the much-needed asset sales haven’t made any progress. Creditors are frustrated, and shareholders have zero hope of recovery.

    Unless a miraculous acquisition or restructuring deal materialises, RCom. is likely to become a footnote in India’s corporate history-a grim reminder of how unchecked expansion, debt mismanagement, and regulatory battles can sink even the biggest players.

  • Natpe announces its plan to file for bankruptcy under chapter 11

    Natpe announces its plan to file for bankruptcy under chapter 11

    Mumbai: The National Association of Television Program Executives (Natpe) has announced its plan to restructure its business affairs with the Bankruptcy Court under Chapter 11 of the bankruptcy code. It said, “Like many other professional organisations, Natpe has been adversely impacted by the Covid pandemic, which prevented us from holding events, which typically generate significant revenue. Natpe was forced to operate on its financial reserves, which now required it to reorganise its business structure.”

    “Natpe is looking at all possible options to restructure, including raising funds through strategic alliances and continuing to operate Natpe as a more streamlined and reorganised operation. For almost 60 years, Natpe has been the leading global professional association for content producers, distributors, developers, streamers, and buyers across all distribution platforms. Natpe is optimistic that it will emerge from the reorganisation process in the same position,” it said.

    The emergence of new Covid-19 strains at a time when infections were at their maximum led to Natpe being compelled to postpone its main conference and market activities in 2021 and 2022.

    In response to one of the largest rises in Covid infections, Natpe decided to cancel the in-person conference scheduled for January 2022 in Miami, Florida. Next year it will host an event in the Bahamas from 18-20 January instead of in Miami. It aims to return to Budapest in the summer.

  • Weinstein Company files for bankruptcy

    Weinstein Company files for bankruptcy

    MUMBAI: The Weinstein Company, producer of movies such as Inglorious Bastards and Lion, has filed for bankruptcy. The move, intended to facilitate a buy-out offer from a private equity firm, came months after ex-chairman Harvey Weinstein has been accused of sexual harassment and assault.

    In a press release, the company said it would be releasing all employees from non-disclosure agreements. After spending months looking for a buyer or investor, it has entered into a “stalking horse” agreement with a Lantern Capital affiliate. Lantern affirmed its commitment to “maintaining the company’s assets and employees as a going concern.”

    Harvey Weinstein, once a big name in Hollywood, has been accused of sexual misconduct by more than seven women. According to reports, he used non-disclosure agreements as a secret weapon to silence his accusers. Company termed its latest move as “an important step toward justice for any victims who have been silenced by Harvey Weinstein.”

    “No one should be afraid to speak out or coerced to stay quiet. The company thanks the courageous individuals who have already come forward. Your voices have inspired a movement for change across the country and around the world,” the statement said.

    The studio produced and distributed critically acclaimed hits including The King’s Speech and Silver Linings Playbook and The Artist as well as TV series such as long-running fashion reality competition Project Runway. 

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  • Titanic director’s production firm files for bankruptcy

    Titanic director’s production firm files for bankruptcy

    MUMBAI: Digital Domain Media Group Inc, the production outfit of Titanic director James Cameron has filed for bankruptcy protection and will be selling its operating business to a private investor for $15 million.
    The company, which won Academy Awards for Titanic and has given special effects in films like Transformers and Pirates Of The Caribbean, filed for bankruptcy protection in the US bankruptcy court along with a Canadian court.
    With operations in Florida, California, Canada, India, China and Abu Dhabi, the company has assets of $205 million and debt of $214 million in Chapter 11 papers filed by the company.
    Private investment firm Searchlight Capital Partners has agreed to pay $15 million for Digital Domain Productions, the key operation outfit of Digital Domain Media Group. Currently there are three films in its pipeline that includes Ender‘s Game, The Giant Killer and G.I. Joe: Retaliation.