Doha Bank moves NCLT to seek stay on RITL CoC decision

Press Trust of India  |  Mumbai 

Bank Thursday approached the (NCLT) to seek stay on a decision of the committee of creditors (CoC) of (RITL).

The claimed to be and said as a syndicate of four banks, it had lent Rs 1,400 crore to

Bank is against considering lenders having corporate guarantee of as financial creditors as this will marginalise their voting rights to 15 per cent from around 55 per cent currently, he claimed.

The claimed that and three other banks are giving Rs 1,400 crore, while gave Rs 900 crore and Rs 300 crore was given by operational creditors, taking the total to Rs 2,600 crore.

After defaulted on payments, its lenders invoked corporate guarantees given by RITL and converted into debt, the counsel said.

So, with corporate guarantee of Rs 8,000 crore the overall amount will go up to Rs 10,600 crore, he claimed.

The NCLT bench headed by V P Singh and Ravikumar Duraisamy kept the matter for hearing on Friday.

On May 15, the bench of NCLT had admitted an insolvency petition filed by against and two of its subsidiaries, RITL and (RTL), seeking to recover unpaid dues.

Ericsson, which had signed a seven-year deal in 2014 to operate and manage Reliance Communications' nationwide telecom network, had alleged that it had not been paid the dues.

In September 2017, the Swedish company had filed a petition in the NCLT's bench seeking liquidation of the to recover Rs 1,150 crore that Reliance Communications allegedly owes it.

According to the company website, Reliance Communications and its two subsidiaries, RITL and RTL, owe over Rs 6,700 crore to financial creditors.

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First Published: Thu, May 30 2019. 22:00 IST