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NCLT Halts Bankruptcy Proceedings Against RCom As Anil Ambani-Led Firm Settles Dues With Ericsson
A Reliance Communications Retail Outlet (Hemant Mishra/Mint via Getty Images)
The National Company Law Tribunal (NCLT) yesterday decided t put the brakes on its bankruptcy proceedings against Anil Ambani-led Reliance Communication (RCom), reports Mint. The Tribunal had earlier initiated proceeding against RCom and two other group companies – Reliance Telecom and Reliance Telecom – on the basis of a plea filed by Swedish telecom manufacturer Ericsson over unpaid dues.
Th eproceedings had also halted RCom’s sale of its assets to Mukesh Ambani-led Jio Infocomm Limited. Yesterday’s order staying the proceedings came after Ericsson accepted RCom’s offer to pay Rs 550 by 30 September.
The tribunal however made it clear that RCom had to pay its dues to Ericsson in 120 days starting 1 June, failing which it would restart bankruptcy proceedings. It also RCom and its lenders headed by the State Bank of India (SBI) to sell its mortgaged assets to Jio.
In 2014, Ericsson had signed a seven-year deal with RCom to operate the telecom operator’s pan-India network but moved the NCLT under he Insolvency and Bankruptcy Code in 2016 over non-payment of dues.
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