MUMBAI : In a major setback for Reliance Communications (RCom), the National Company Law Tribunal on Tuesday admitted Ericsson India’s insolvency plea against the debt-laden telecom operator. Ericsson India will inform the tribunal on the appointment of insolvency resolution professional on Wednesday.
In September, the Swedish company had filed an insolvency plea against Reliance Communications and its subsidiaries for non-payment of dues of over Rs 1,100 crore. The tribunal’s ruling is likely to jeopardise the company’s deal with Reliance Jio Infocomm, which will almost halve its debt.
Reacting to the ruling, the telecom major said in an exchange filing that it will study the detailed order before deciding on the next course of action.
RCom owes around Rs 45,000 crore to a consortium of 28 banks led by State Bank of India. The bank, which had intervened in the case on behalf of the consortium, requested the tribunal not to admit the petition considering that the banks are close to complete the deal with Reliance Jio Infocomm.
Earlier, the Supreme Court had set aside the arbitral court’s interim order, which was upheld by the Bombay High Court, directing Reliance Communications not to sell its assets without its approval.