The National Company Law Tribunal (NCLT) Mumbai has allowed Reliance Communications (Rcom) to substitute its resolution applicant under the resolution plan submitted by the bankrupt telco.
Rcom had changed its resolution applicant to UV Stressed Asset Management Private Limited (UVSAMPL) from the original UV Asset Reconstruction Company Limited (UVARCL) as the latter did not meet some guidelines issued by the Reserve Bank of India (RBI). The company had filed an application regarding the same with the NCLT.
“The said application was last listed before the NCLT on December 12, 2023, for pronouncement of order, and the NCLT orally pronounced its order, vide which it has allowed the said application,” Rcom said in a regulatory filing Wednesday.
As per the oral pronouncement by the NCLT on December 12, 2023, the Rcom has been allowed substitution of resolution applicant i.e. UVARCL with UVSAMPL under the resolution plan.
The company said the written order is awaited and will be separately shared with the stock exchanges, upon it being made available by the NCLT.
As per Rcom, its resolution plan submitted by resolution applicant UVARCL was approved by the committee of creditors of the company pursuant to the meeting held on March 2, 2020. The application for the approval of the said resolution plan is currently pending adjudication before the NCLT, Mumbai Bench.
The RBI had issued certain guidelines pertaining to the ‘Review of Regulatory Framework for Asset Reconstruction Companies (ARCs)’ on October 11, 2022. “…pursuant to the issuance of said guidelines, in view of UVARCL not meeting certain requirements to be eligible to be a resolution applicant, it filed an application before the NCLT, seeking, inter alia, substitution of UVARCL with an affiliate of UVARCL, being UV Stressed Asset Management Private Limited (UVSAMPL), as the resolution applicant in respect of the resolution plan for Rcom,” the company said.
Source: Economic Times