New Delhi: Debt-ridden Reliance Communications is looking to complete the sale of its business assets worth ₹ 25,000 crore by the end of this month, and has also agreed to pay ₹ 550 crore towards settlement to telecom gearmaker Ericsson by September end. Reliance Communications has “agreed to pay a settlement amount of ₹ 550 crore to Ericsson on or before September 30, 2018,” the company said in a regulatory filing.
The Supreme Court of India had, on August 3, approved the settlement arrived at between RCom and Ericsson India Pvt Ltd over a payment dispute, and asked the Anil Ambani-led firm to pay Rs 550 crore to the Indian arm of the Swedish firm by September 30. Ericsson India Pvt Ltd, which signed a seven-year deal in 2014 to operate and manage RCom’s telecom network, had moved the National Company Law Appellate Tribunal (NCLAT), alleging non payment of dues.
A Supreme Court Bench, however, perused the May 30 interim order of the NCLAT and noted that Ericsson India Pvt Ltd was willing to settle its debt of over Rs 1,500 crore for a sum of Rs 550 crore, which was to be paid by RCom within 120 days. The apex court on August 3 allowed RCom to sell assets covering spectrum, fiber, telecom towers and certain real estate assets, for an aggregate value of Rs 25,000 crore.
“The company expects to complete all the transactions by August, thereby accelerating its overall debt resolution plan,” RCom said. The company has also entered into an agreement with Mukesh Ambani-led Reliance Jio and asset management firm Brookfield to sell telecom business assets.
Reliance Group companies have sued HT Media Ltd, Mint’s publisher, and nine others in Bombay high court over a 2 October 2014 front-page story that they have disputed. HT Media is contesting the case.