Anil Ambani-led Reliance Communications (RCom), with a debt of ₹46,000 crore, has decided to file for insolvency proceedings at National Company Law Tribunal (NCLT) Mumbai to seek fast-track resolution.
RCom had been unable to sell its spectrum and tower assets to Reliance Jio for ₹20,000 crore “The board of directors of RCom today [Friday] reviewed the progress of the company’s debt resolution plans since the invocation of SDR on June 2, 2017. The board noted that, despite the passage of over 18 months, lenders have received zero proceeds from the proposed asset monetisation plans, and the overall debt resolution process is yet to make any headway,” said RCom in a statement, adding that the board decided that the company would seek fast-track resolution through NCLT.
This means the ₹20,000- crore deal with Reliance Jio has been called off and Reliance Jio would have to bid again for RCom’s assets through the NCLT-monitored process.
“The NCLT will appoint an IRP, who will call fresh bids for RCom assets. Jio is likely to bid for spectrum and tower assets as its network runs on them. However, it is to be seen if a new bidder will join the race,” a source told The Hindu.