Reliance Communications (RCom) was up 15% to Rs 20.10 on the BSE in early morning trade after the National Company Law Appellate Tribunal (NCLAT) stayed the May 15 order of the National Company Law Tribunal (NCLT) in Mumbai, which had admitted the RCom and two of its subsidiaries for insolvency proceedings.
“The NCLAT vide its orders dated May 30, 2018 stayed, with immediate effect, all the three orders dated May 15, 2018 whereby NCLT had admitted the Company and its subsidiaries Reliance Infratel Limited and Reliance Telecom Limited to Corporate Insolvency Resolution Process (CIRP) under Insolvency and Bankruptcy Code, 2016,” RCom said in a statement.
RCom expects to now complete the sale of its assets within the next few weeks, having removed legal hurdles of cases by minority investors of RITL, and Ericsson, thereby achieving an overall debt reduction of approximately Rs 250 billion from the first phase of its asset monetization program, the company said.
According to Business Standard report, the NCLAT asked the Anil Ambani-controlled firm to pay Ericsson Rs 5.5 billion by the end of September. NCLAT also asked RCom and Ericsson to file an affidavit by June 7 stating that the two companies will abide by the settlement.
Meanwhile, other Anil Ambani Group stocks like Reliance Naval and Engineering, Reliance Power, Reliance Capital and Reliance Infrastructure were up in the range of 2% to 12% on the BSE. On comparison, the S&P BSE Sensex was up 0.35% at 35,209 points at 09:17 am.
Source: Business Standards, May 31, 2018