Reliance CommunicationsTuesday confirmed that it has moved the National Company Law Appellate Tribunal (NCLAT) against the lower court’s order on beginning insolvency proceedings against the company and its two subsidiaries.
“The directors of Reliance Communications Limited and two of its subsidiaries Reliance Telecom Limited and Reliance Infratel Limited, today filed appeals before the Hon’ble National Company Law Appellate Tribunal (NCLAT), New Delhi, challenging and praying to stay the order of the Hon’ble National Company Law Tribunal (NCLT), Mumbai, whereby Ericsson applications had been allowed to be admitted for debt resolution under the NCLT IBC process,” the company said in a statement.
RCom’s shares were up 11.57% to Rs 14.95 as of 1:38 pm, on the Bombay Stock Exchange.
ET had reported on Tuesday about RCom’s move, even as talks between the company and telecom gear maker Ericsson to settle legal issues over Rs 1,000 crore that the Anil Ambani owned companies owe, outside the court process were still going on.
RCom’s shares were up 2.61% to Rs 13.75 as of 12:45 pm, on the Bombay Stock Exchange.
Reliance Communications, Reliance Infratel and Reliance Telecom filed the pleas in the National Company Law Appellate Tribunal asking it to set aside the NCLT’s order on the grounds that Ericsson was an operational creditor.
ET also reported last week that the latest settlement amount discussed was Rs 700 to Rs 800 crore, after Ericsson rejected an initial offer of Rs 400-500 crore. RCom confirmed the discussions, adding that resolution of the issue would help it exit the insolvency process.
Ericsson has sought an undertaking that State Bank of India, one of RCom’s lenders, will pay up the dues if the telco does not clear the settled amount. Discussions around this are still going on.
Source: Economic Times