New Delhi : Reliance Communications (RCom) on Tuesday offered an upfront payment of Rs 500 crore to its operational creditor Ericsson, which has got an insolvency order against the Anil Ambani group firm.
During the proceedings of the National Company Law Appellate Tribunal (NCLAT), senior advocate Kapil Sibal, appearing for RCom, suggested an upfront payment. To this, the NCLAT bench headed by Chairman Justice S J Mukhopadhaya suggested settlement between parties.
“You know the fate of operational creditors (in corporate resolution process). You may not even get 5 per cent. If you want we would give you time for settlement,” the bench said. Ericsson had total dues of Rs 978 crore, which have increased to Rs 1,600 crore, counsel appearing for Ericsson informed. “If you want, we can allow settlement. Find out ways and means to solve the issue,” the bench said.
The tribunal has listed for Wednesday the hearing of interim prayer of RCom to stay NCLT order, which has directed to start insolvency proceedings against it over the Ericsson plea.
During the proceedings, Sibal said that RCom has a total debt of around Rs 46,000 crore.
He added that RIL’s Jio, which is buying RCom’s assets, has offered Rs 17,000 crore of upfront payment along with spectrum dues and transfer of debts. On May 15, the Mumbai bench of the NCLT had admitted an insolvency petition filed by Ericsson against RCom and two of its subsidiaries seeking to recover unpaid dues.
Infratel settles row with HSBC Daisy
New Delhi: Reliance Infratel has reached an agreement with its minority shareholder HSBC Daisy Investments (Mauritius) to settle a dispute over non-payment of dues, paving the way for sale of the firm’s telecom tower business to clear bank loans. Following the development, the Anil Ambani led firm on Tuesday withdrew its petition from the National Company Law Appellate Tribunal (NCLAT) seeking permission to sell its tower and fibre assets.
The move will allow debt-hit RCom to proceed with asset monetisation by selling tower and fibre assets of Reliance Infratel (RITL). During the proceedings of NCLAT, the counsel appearing for the RCom subsidiary informed the appellate tribunal that it has reached a settlement with HSBC Daisy Investments (Mauritius), which holds 4.26 per cent shareholding in the company.
