Breakingviews

FirstGroup cash call shows deleveraging imperative

May 20, 2013

The rail and bus operator is raising $1 bln to stave off a ratings downgrade. The chairman is leaving. Debt may be cheap, but too much is still a constraint. With equity markets rising, this won’t be the last over-geared firm to seek to restructure its balance sheet.

Reliance accepts need for deleveraging pain

June 8, 2010

Reliance Communications is facing up to reality in its attempts to deleverage. The mooted sale of a 26 percent stake in India's second largest telecom operator could raise almost $2 billion and halve net debt. But with current market valuations a long way from their peak, it must have been painful for Reliance's board to give the green light for a strategic investor to come in.