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NCLT Halts Bankruptcy Proceedings Against RCom As Anil Ambani-Led Firm Settles Dues With Ericsson
Swarajya Staff
May 31, 2018, 03:31 PM | Updated 03:31 PM IST
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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.
Taking into consideration the fact that if the corporate insolvency resolution process continues, both financial creditors as well as operational creditors will suffer...and prima facie case has been made out, the impugned order is stayed.Justice S J Mukhopadhyaya of the NCLT
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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