NEW DELHI: The National Company Law Apellate Tribunal (NCLAT) on Wednesday stayed bankruptcy proceedings against Reliance Communications (RCom) after the debt-laden telecom operator agreed to pay Rs 550 crore to Ericsson to settle a payment dispute.
Swedish company Ericsson, which signed a seven-year deal in 2014 to function and arrange RCom's national telecom network, was once in the hunt for Rs 1,155 crore from the corporate and two of its subsidiaries. RCom had due to this fact, filed an attraction with the NCLAT after the tribunal earlier this month admitted an insolvency plea against the corporate filed through Ericsson.
A two-member bench headed through NCLAT Chairman Justice S J Mukhopadhaya directed RCom and its subsidiares -- Reliance Infratel and Reliance Telecom -- to pay Rs 550 crore to Ericsson India in 120 days, failing which it'll direct insolvency proceedings against the corporate.
The countdown would start from June 1.
RCom agreeing to pay part of its because of Ericsson through September-end doubtlessly paves the way for the Anil Ambani-controlled telecoms operator to promote its wi-fi belongings together with mobile masts and airwaves to his brother Mukesh Ambani's Reliance Jio Infocomm (Jio) and Canadian company Brookfield in a deal price to the track of Rs 23,000 crore. With debt of Rs 45,733 crore at the finish of March 2017, RCom is the most debt-laden listed telecom service in India.
Reports counsel that the deal between RCom and Jio-Brookfield is expected to come back via in the following couple of weeks.
in Thursday's trading, RCom shares have been up nearly 10 consistent with cent at Rs 19.20 on the BSE. The broader marketplace compared was once up around zero.40 consistent with cent.
(With enter businesses)
Swedish company Ericsson, which signed a seven-year deal in 2014 to function and arrange RCom's national telecom network, was once in the hunt for Rs 1,155 crore from the corporate and two of its subsidiaries. RCom had due to this fact, filed an attraction with the NCLAT after the tribunal earlier this month admitted an insolvency plea against the corporate filed through Ericsson.
A two-member bench headed through NCLAT Chairman Justice S J Mukhopadhaya directed RCom and its subsidiares -- Reliance Infratel and Reliance Telecom -- to pay Rs 550 crore to Ericsson India in 120 days, failing which it'll direct insolvency proceedings against the corporate.
The countdown would start from June 1.
RCom agreeing to pay part of its because of Ericsson through September-end doubtlessly paves the way for the Anil Ambani-controlled telecoms operator to promote its wi-fi belongings together with mobile masts and airwaves to his brother Mukesh Ambani's Reliance Jio Infocomm (Jio) and Canadian company Brookfield in a deal price to the track of Rs 23,000 crore. With debt of Rs 45,733 crore at the finish of March 2017, RCom is the most debt-laden listed telecom service in India.
Reports counsel that the deal between RCom and Jio-Brookfield is expected to come back via in the following couple of weeks.
in Thursday's trading, RCom shares have been up nearly 10 consistent with cent at Rs 19.20 on the BSE. The broader marketplace compared was once up around zero.40 consistent with cent.
(With enter businesses)
RCom insolvency proceedings stayed, deal with Jio may soon come through
![RCom insolvency proceedings stayed, deal with Jio may soon come through]()
Reviewed by Kailash
on
May 31, 2018
Rating:
