The committee of creditors to Reliance Communications Ltd on Wednesday approved the resolution plans submitted by Reliance Jio Infocomm Ltd and UV Asset Reconstruction Company (UVARC) for the now-defunct telecom operator’s businesses, two bank officials said, requesting anonymity.
While Jio offered around ₹4,700 crore to buy the tower and fibre assets of Reliance Infratel Ltd, UVARC offered ₹14,000 crore for RCom’s real estate assets and telecom spectrum, as well as its enterprise and data centre businesses, which are part of RCom and Reliance Telecom Ltd, they said.
Jio and UVARC have committed to pay 30% of the total amount within 90 days. “In addition, the lenders will clawback the priority payments of around ₹4,300 crore made to Chinese and Indian lenders,” the first bank official said, adding that while ₹3,000 crore will be clawed back from Indian lenders, the rest will come from Chinese banks.
The clawback provision allows a liquidator to seek recovery, or clawback, of payments made to a creditor by the company, or make the transaction void.
However, despite the clawback provisions, loans of Chinese lenders will reduce by nearly 65% from about ₹12,000 crore to around ₹4,000 crore, the first person added.
RCom’s 38 lenders will recover ₹23,000 crore, which is more than 70% of the ₹33,000 crore in outstanding secured debt. Lenders had submitted claims for ₹49,000 crore, including unsecured debt, in August.
“This will be the highest-ever recovery of dues by financial creditors in the telecom sector, which has seen the exit or shutting down of 11 out of 12 telcos since 2012,” the second bank official said.
Emailed queries to Reliance Jio did not elicit any response while UVARC could not be reached for comment.
RCom was referred to the National Company Law Tribunal last May after the CoC rejected an offer by Reliance Jio.
Reliance Group companies have sued HT Media Ltd, Mint’s publisher, and nine others in the Bombay high court over a 2 October 2014 front-page story that they have disputed. HT Media is contesting the case.
