RCOM, Ericsson look to settle dispute outside of insolvency proceedings

Reliance Communications (RCOM) and Swedish vendor Ericsson have entered talks to settle their dispute over the operator’s unpaid fees outside of RCOM’s insolvency and bankruptcy proceedings, the Economic Times writes, citing people familiar with the matter. According to one of the sources, Ericsson has requested a guarantee that the State Bank of India (SBI) – one of RCOM’s secured lenders, and therefore amongst the first in line to be paid with the proceeds of the sale of RCOM’s assets – will pay the vendor the outstanding dues if RCOM fails to clear the settled amount. Ericsson is attempting to recover around INR10 billion (USD147 million) and is reportedly negotiating for a payout of INR7 billion to INR8 billion, having rejected an offer of between INR4 billion and INR5 billion, another of the sources said.