The Insolvency and Bankruptcy (IBC) proceedings of telecom operator Reliance Communications (RCom) are expected to be delayed further as the Supreme Court has adjourned hearing its application by two weeks.
The adjournment is also likely to impact RCom’s ongoing proceedings before the National Company Law Appellate Tribunal (NCLAT), with the next hearing slated for April 8. The overall process of IBC re-initiation is also likely to be delayed by four weeks, sources close to the development told sources.
On Thursday, the apex court heard a petition filed by RCom before the NCLAT on May 20, 2018, to withdraw earlier, wherein it sought that the company should not be sent to IBC.
On March 18, debt-laden RCom and Reliance Jio Infocomm (RJio), a wholly-owned subsidiary of Reliance Industries, had decided to mutually terminate an asset-sale agreement.
This comes even as Mukesh Ambani stepped in to save his younger brother Anil from going to jail by coughing up the money to repay Swedish equipment major Ericsson. RCom paid Rs 458.77 crore to Ericsson, avoiding a potential three-month jail term for its Chairman Anil Ambani.
The asset sale agreements, signed on December 28, 2017 and August 11, 2018, were aimed at reducing RCom’s debt but regulatory and legal hurdles delayed the completion of the deal.
Having completed the payment obligations to Ericsson, RCom is to approach NCLAT in the next few days seeking resurrection of its insolvency case in the lower court.
Source: Business Line, March 29, 2019