SC vacates HC stay, RCom’s secured lenders can go ahead with asset sale

Industry:    2018-04-06

Debt-laden telecoms firm Reliance Communications Ltd (RCom) said on Thursday that Supreme Court has lifted a ban on sale of its assets, and has ordered secured lenders to proceed with the sale.

RCom also said it will file an appeal before the National Company Law Appellate Tribunal (NCLAT) on Friday.

The company is “confident of securing appropriate relief from the NCLAT to enable sales of tower and fibre assets to also be completed at the earliest,” it said in a statement.

The National Company Law Tribunal had prevented RCom from selling any asset without its permission, following a legal challenge from Swedish telecoms gear maker Ericsson, seeking payment of unpaid dues of Rs 11.55 billion ($177.7 million) by RCom and two of its units.

“There is now no bar in immediately completing the asset sale of spectrum, MCNs and real estate, and the same shall be concluded expeditiously,” the company, backed by businessman Anil Ambani, said.

The heavily indebted RCom is aiming to cut its obligations by selling most of its wireless assets to Reliance Jio Infocomm Ltd, owned by Anil Ambani’s elder brother and India’s richest man, Mukesh Ambani.

RCom shares closed 4.5 percent up in the Mumbai market that closed up 1.94 percent.

print
Source: