RCOM to file for debt resolution via NCLT

4 Feb 2019

Reliance Communications (RCOM) has announced that it will complete its debt resolution plans through the National Company Law Tribunal (NCLT) framework, after litigation and legal challenges prevented the finalisation of its asset monetisation schemes. In its statement, the company said that ‘despite the passage of over 18 months, lenders have received zero proceeds from the proposed asset monetisation plans, and the overall debt resolution process is yet to make any headway’. RCOM attributed the failure to a lack of approval and consensus amongst its over 40 lenders, and setbacks on numerous issues from the Supreme Court and High Courts as well as the Telecom Disputes Settlement and Appellate Tribunal (TDSAT). In a subsequent document, meanwhile, RCOM stated that the key elements of its debt resolution plan remained unchanged, and included the sale of its spectrum, telecom infrastructure and real estate assets, as well as the ‘strategic monetisation’ of its submarine cable, data centre and Indian enterprise businesses.

India, Reliance Communications (RCOM)