Reliance Communication (RCom) on Wednesday settled Swedish telecom networking company Ericsson's dues, while its asset sales to Reliance Jio got NCLAT’s nod marking its exit from the wireless business completely. The National Company Law Appellate Tribunal (NCLAT) has also halted bankruptcy proceedings ordered two weeks ago against the debt-laden company.

On Tuesday, RCom had offered an upfront payment of Rs 500 crore to its operational creditor Ericsson, which had got an insolvency order against the Anil-Ambani led group.

A Mumbai bench of NCLAT on Wednesday halted bankruptcy proceedings ordered two weeks ago against RCom, after the debt-laden telecom firm and the local unit of Ericsson AB agreed to settle the dispute.

The NCLAT put a freeze on the 270-day insolvency process that had been triggered by a May 15 court decision and ordered the operator to pay Rs 550 crore ($81.5 million) to Ericsson by the end of September. The initial insolvency ruling came in a suit by the vendor against RCom over dues, which amounted to about Rs 1,600 crore, Ericsson’s lawyer Arun Kathpalia had said.

The carrier had appealed the lower court order that also drew opposition from creditors including China Development Bank and the State Bank of India.

The latest court order gives the lenders of RCom, with Rs 45,000 crore in debt, the go-ahead needed to complete a deal to sell its tower, spectrum and fibre assets to Reliance Jio, controlled by Anil’s elder brother Mukesh Ambani. Proceeds of Rs 18,100 crore from the sale will be repaid to banks, the court stated.

RCom on Tuesday had reached a settlement with minority shareholders in Reliance Infratel in relation to the sale of tower and fibre assets. Shares of RCom climbed for a fourth day, adding 9.7 per cent on Wednesday to close at Rs 17.5 in Mumbai.

The lower court’s insolvency order earlier this month had put the RCom’s proposed asset sale in risk because bankruptcy law prohibits “connected persons” from acquiring assets of delinquent borrowers.