Share price of Reliance Communication climbed by almost 5% in early trade after lenders provided a seven-months time to the company for paying off its debt on Friday.

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At 1252 hours, RCom was trading at Rs 21 per piece on Nifty, up by 1.69%.  

Also Read: Lenders have given us time till December, says RCom’s Anil Ambani

RCom has over Rs 44,000 crore in debt and reported a net loss of Rs 948 crore in the fourth quarter ended March 31, 2017.

Ambani hopes that 60% of RCom's total debt can be repaid from its two deals namely Brookfield Infrastructure and Aircel. 

RCom in a statement on May 30, 2017 said, "Post signing of binding documents for the Aircel and Brookfield transactions, RCOM has formally advised all its lenders that it will be making repayment of an aggregate amount of Rs 25,000 crore from the proceeds of these two transactions, on or before 30th September 2017."

Also Read: Reliance Communications assures lenders of Rs 25,000 crore payment in four months

The said amount will cover not only all scheduled repayments, but also include substantial pre-payments to all lenders on a pro-rata basis, RCom said. 

Sale of tower business to Brookfield will lead reduction of debt by Rs 11,000 crore and wireless business merger with Aircel will reduce debt by another Rs 14,000 crore.

RCom stated along with reduction in debt from Aircel deal, it will also be able to transfer of liability for spectrum installments of an additional Rs 6,000 crore. 

Thus a total of Rs 25,000 crore debt will be managed by these agreement.