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Anil Ambani’s Rcom Opts For Insolvency Proceedings

Reliance Communications (RCom) on Friday said it will seek fast track resolution through National Company Law Tribunal, the court that deals with bankruptcy cases, to resolve its debt position.

The insolvency filing comes weeks after Swedish network giant Ericsson petitioned the Supreme Court to arrest Anil over recurring delays in payment of RCom’s dues worth Rs 550 crore, and accused the businessman of engaging in “gross and wilful contempt” of the apex court.

“RCom board of directors decides upon implementation of debt resolution plans through NCLT framework,” the company said in a statement. The board of directors of RCom on Friday reviewed the progress of the company’s debt resolution plans since the invocation of strategic debt resolution on June 2, 2017.

“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,” the company said in a statement on Friday.

RCom’s move will mean its agreements to sell 122.4 MHz of spectrum and 43,000 telecom towers to Reliance Jio and some real estate to Canada’s Brookfield get cancelled. However, it has already completed the sale of nodes and fibre for Rs5,000 crore.

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