The National Company Law Appellate Tribunal (NCLAT) on Tuesday suggested Reliance Communications and its operational creditor Ericsson resolve their dispute over the latter’s unpaid dues mutually by 3 pm on Wednesday.
This suggestion was proffered by the NCLAT bench when in the course of the hearing RCom offered to make an upfront payment of Rs 500 crore to Ericsson against the total claim of Rs 1,600 crore. The NCLAT will further hear the case on Wednesday on RCom’s prayer to stay the National Company Law Tribunal’s order directing to start insolvency proceedings against the company over Ericsson’s plea.
“You know the fate of operational creditors. You may not get even 5 per cent. If you want we would give you time for settlement,” the NCLAT bench said. “If you want, we can allow settlement. Find out ways and means to solve the issue,” the bench added.
Ericsson had total dues of Rs 978 crore, which have now rose to Rs 1,600 crore, the counsel appearing for Ericsson said.
Making the offer of upfront payment of Rs 500 crore on behalf of RCom, senior advocate Kapil Sibal said that RCom has a total debt of Rs 46,000 crore and Reliance Jio, which is buying RCom’s assets, has offered Rs 17,000 crore of upfront payment along with spectrum dues and transfer of debts.
Ericsson, 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. Last September, the Swedish company had filed a petition in the NCLT’s Mumbai bench seeking liquidation of the telecom operator to recover its dues.
On a separate matter, the appellate tribunal on Tuesday allowed Reliance Infratel to withdraw its petition seeking permission to sell its tower and fibre assets. Counsel appearing for Reliance Infratel informed NCLAT that they have reached settlement with its minority share holder HSBC Daisy Mauritius. FE
NCLAT agrees to hear NuMetal, ArcelorMittal pleas on May 30-31
New Delhi: On the plea of bankrupt Essar Steel’s lenders, the National Company Law Appellate Tribunal (NCLAT) on Tuesday agreed to hear the cross pleas filed by the two bidders for the firm — Numetal and ArcelorMittal — on May 30 and 31, before it goes for summer vacation from June 1.
On May 22, the appellate tribunal had ordered that status quo be maintained in the resolution process for Essar Steel and directed that these matters would be heard on a daily basis from July 23. However, citing losses being incurred every day, the lenders moved the appellate tribunal requesting early hearing on the pleas of the contenders.
In its May 22 order, the NCLAT directed Essar Steel’s lenders, RP and the adjudicating authority not to pass any order including the order of liquidation during the interim. FE