NCLT to hear Ericsson's RCom insolvency petition on November 8
ET Bureau|
Updated: Oct 06, 2017, 01.57 PM IST
MUMBAI: The National Company Law Tribunal (NCLT) will hear on November 8 the case on whether Ericsson's insolvency petition against Reliance Communications (Rcom) should be accepted.
On September 11, Ericsson had filed for insolvency in the NCLT under the newly-formed Insolvency and Bankruptcy Code to recover Rs 1,150 crore from RCom for services and equipment it had earlier supplied. Under this, the tribunal can initiate takeover of the company or even liquidation to settle debt.
Negotiations between the two to reach an out of court settlement have failed so far as well.
Two months back, the court had rejected Ericsson’s right to object to admitting the merger application of Aircel and RCom as the amount it was due was below 5% of RCom’s total debt. The application to object was simultaneously filed by 13 others, apart from Ericsson, who were claiming dues from RCom.
Last Sunday, Rcom called off merger with Aircel.
On September 11, Ericsson had filed for insolvency in the NCLT under the newly-formed Insolvency and Bankruptcy Code to recover Rs 1,150 crore from RCom for services and equipment it had earlier supplied. Under this, the tribunal can initiate takeover of the company or even liquidation to settle debt.
Negotiations between the two to reach an out of court settlement have failed so far as well.
Two months back, the court had rejected Ericsson’s right to object to admitting the merger application of Aircel and RCom as the amount it was due was below 5% of RCom’s total debt. The application to object was simultaneously filed by 13 others, apart from Ericsson, who were claiming dues from RCom.
Last Sunday, Rcom called off merger with Aircel.
