Reliance Communications’ resolution in limbo as DoT raises objection
The Department of Telecommunications has objected to the resolution plan for Reliance Communications, as well as its unit Reliance Telecom, at the National Company Law Tribunal (NCLT), Mumbai.
The NCLT has adjourned its hearing on the resolution plan for the firms till August 21. The Department of Telecommunications will file written submissions by then. According to the resolution plan approved by lenders, the Department of Telecommunications will not get any proceeds following resolution of the companies, because it has been labeled an operational creditor.
The CoC, led by State Bank of India, approved of the resolution plan that involves lenders receiving Rs 23,000 crore. Jio and UV Asset Reconstruction Company emerged the highest bidders for RCom’s assets.
Jio had bid Rs 4,700 crore for the tower and fibre assets of Reliance Infratel. UVARC had bid Rs 14,000 crore for the spectrum, real estate assets, as well as enterprise and data centre businesses of both RCom and Reliance Telecom.
Based on the resolution plan, the Chinese lenders to RCom will receive Rs 5,500 crore.
The consortium of 38 lenders were hoping to recover a substantial portion of the secured debt worth Rs 33,000 crore from the process.