Case Study: RCom's Bankruptcy, Lessons in Leverage

A leverage case study of Reliance Communications, which went from one of India's most valuable listed companies in 2008 to an insolvency case at the NCLT in 2019. Built for experienced retail investors, active traders and HNIs who want to spot a debt problem years before it becomes a default. Traces how RCom borrowed: rupee term loans, foreign currency convertible bonds and Chinese bank debt, and how spectrum bills, the CDMA bet and a brutal tariff war stretched that debt past breaking point. Works through the numbers an investor should have run: net debt to EBITDA, interest coverage, refinancing walls and currency mismatch. Covers the failed asset sales, rating downgrades to default, the Ericsson case, the IBC process, the AGR ruling, promoter pledges and why equity holders got close to nothing. Ends with a debt audit checklist you can run on any leveraged NSE or BSE company using screener.in.