The NCLT has decided to hear the resolution plan of Reliance Communications Ltd (RCom), Reliance Infratel Ltd (RITL) and Reliance Telecom Ltd (RTL) on August 5 for approval, after the resolution professional (RP) asked for an early hearing in the case citing “huge” maintenance cost of the companies at Rs 170 crore per month.
As per norms, the maintenance cost is to be borne by the company undergoing the insolvency process once it is approved by the creditors of the company.
RCom, once the flagship company of the Anil Ambani-led Reliance group, was admitted into insolvency by the Mumbai Bench of the National Company Law Tribunal (NCLT) in June 2019.
In an order passed on July 29, the tribunal agreed to hear the resolution plan for RCom, RITL and RTL for approval, as apart from the RP, Ericsson India Pvt Ltd and the committee of creditors led by State Bank of India (SBI) too moved the court separately, requesting an urgent listing of the case. Ericsson is seeking release of its dues from RCom, said the plea.
On March 6, 2020, the RP of RCom and its subsidiaries submitted a resolution plan approved by the creditors under the Insolvency and Bankruptcy (IBC) process. The plan entails realisation of around Rs 23,000 crore from sale of RCom assets and clawback of money paid to some of the lenders. The total debt of the company is around Rs 46,000 crore.
The Chinese banks which dragged Anil Ambani to a UK court to recover dues — namely, Industrial & Commercial Bank of China Ltd, China Development Bank and the Export-Import Bank of China — will receive Rs 5,500 crore as per the resolution plan.
According to the resolution plan of RCom’s subsidiaries RITL and RTL, Reliance Jio will get the tower and fibre assets of RITL for Rs 4,700 crore and UV Asset Reconstruction Co Ltd will get assets of RCom and RTL (spectrum) for Rs 14,000 crore.
In May, Ambani was ordered by a London judge to pay more than $700 million to a trio of Chinese banks following a dispute over defaulted loans. In February, Ambani claimed in a London court that his net worth had dropped to zero after the value of his investments collapsed.
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