Anil Ambani-led Reliance Communications (RCom), with a debt of ₹46,000 crore, has decided to take the debt-ridden telecom company to bankruptcy court. The company’s board also resolved to file for insolvency proceedings at National Company Law Tribunal (NCLT) Mumbai to seek fast-track resolution.
RCom had been unable to sell its spectrum and tower assets to Reliance Jio for ₹20,000 crore. After 18 months-long wait for asset monetization plans did not reach anywhere. “The board noted that, despite the passage of over 18 months, lenders have received zero proceeds from the proposed asset monetisation plans, and the overall debt resolution process is yet to make any headway,” said RCom in a statement.
With this, the ₹20,000- crore deal with Reliance Jio has been called off and Reliance Jio would have to bid again for RCom’s assets through the NCLT-monitored process.
The company was unable to get 100% approvals and consensus, as mandated by RBI’s February 12, 2018 circular, on all important issues, amongst over 40 lenders, Indian and foreign, despite the passage of 12 months and over 45 meetings, forcing it to go for insolvency proceedings at NCLT.