Debt-ridden Reliance Communications (RCom) is looking to complete the sale of its business assets worth Rs 25,000 crore by the end of this month and has also agreed to pay Rs 550 crore towards settlement to telecom gearmaker Ericsson by September-end. RCom in a regulatory filing said that it has “agreed to pay a settlement amount of Rs 550 crore to Ericsson on or before September 30, 2018”.
The Supreme Court of India on August 3 approved the settlement arrived at between RCom and Ericsson India over a payment dispute and asked the Anil Ambani-led firm to pay Rs 550 crore to the Indian arm of Swedish firm by September 30.
Ericsson India, which had signed a seven-year deal in 2014 to operate and manage RCom’s nationwide telecom network, had alleged that it had not been paid the dues of over Rs 1,500 crore and challenged the debt-ridden firm before National Company Law Appellate Tribunal (NCLAT) .
RCom on Monday announced a ‘tender and exchange’ offer to all holders of its outstanding $300 million bonds due 2020, proposing to buy the notes at a discount in cash. According to a regulatory filing, the company has offered to all holders of the outstanding $300 million senior secured 6.5 per cent notes due 2020 to buy any or all existing notes at a discount in cash. It has also offered an option to exchange any or all existing notes due 2020 at a discount for $45 million zero coupon notes due 2023. – freepressjournal