An Indian appeals tribunal on Wednesday put on hold insolvency proceedings against Reliance Communications (RCom), after the debt-laden Indian telecom carrier reached a settlement with Swedish telecom gearmaker Ericsson.
The National Company Law Appellate Tribunal (NCLAT) in New Delhi has asked RCom to pay Ericsson 5.5 billion rupees ($81.52 million) by end-September as part of the settlement.
The settlement potentially paves the way for the Anil Ambani-controlled telecom operator to sell its wireless assets including mobile masts and airwaves to Reliance Jio Infocomm in a deal sources have said is worth $3.8 billion.
RCom had filed and appeal with the NCLAT, after the National Company Law Tribunal, earlier this month, admitted an insolvency plea against the company that was filed by Ericsson.
Ericsson, which signed a seven-year deal in 2014 to operate and manage RCom’s nationwide telecom network, was seeking 11.55 billion rupees ($171.16 million) from the company and two of its subsidiaries. –Business Standard