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NCLT adjourns Reliance Communication and Reliance Telecom case to August 19

The National Company Law Tribunal (NCLT) will take up the resolution plan of Reliance Communications and Reliance Telecom Infrastructure Ltd (RTIL) on August 19.
Lenders had approved UV Asset Resolution Co Ltd (UVARCL) as buyer of RCom and its subsidiary . These two house spectrum, fibre and data centres.

NCLT is scheduled to hear Reliance Infratel’s case today which according to the resolution plan is expected to go to Reliance Jio.

According to legal sources, the telecom regulator has filed an application for RCom and Reliance Telecom seeking that provision be made in resolution plan that post paid subscribers get back their unspent money and deposits . Axis Bank also raised a question on its guarantees but both these matters will be heard on August 19 by NCLT.

According to the plan approved by lenders RCom and its subsidiary Reliance Telecom Infrastructure Ltd (RTIL), will go to UVARC whereas the tower company Reliance Infratel will go to Reliance Jio for a total consideration of between Rs 20,000 crore to Rs 23,000 crore to be paid over a period of seven years.

The assets of bankrupt telco, which was once led by Anil Ambani and were put up for sale included airwaves in the 850 MHz band in 14 of India’s 22 telecom circles (RCom), about 43,000 telecom towers (Reliance Infratel), some fibre and data centres (Reliance Telecom).
UVARCL is all set to take over bankrupt telco Aircel’s assets too after it received NCLT approval and is now awaiting some regulatory nods .

At the time of filing for bankruptcy, RCom had debt of Rs 46,000 crore, with 53 financial creditors — including local and foreign banks, nonbanking financial companies and funds — laying claims.

Besides banks, operational creditors such as tower companies, equipment vendors and DoT have claimed nearly Rs 30,000 crore in dues, of which over Rs 21,000 crore has been verified.

RCom was forced to shut its wireless operations late 2017, hurt by mounting debt and widening losses amid intense competition in the telecom sector after Jio’s entry in September 2016. It tried to sell its wireless assets, such as spectrum and towers, to Jio, but failed due to a slew of legal cases. This forced the telco to opt for insolvency proceedings under the IBC in May 2019.
India Daily Mail

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