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DoT rejects Aircel resolution plan

2 Jul 2019

The Department of Telecommunications (DoT) has rejected a resolution proposal from bankrupt cellco Aircel that would have seen each of the company’s operational creditors receive INR165 million (USD2.4 million). The Economic Times writes that there was no specific provision for the DoT, which said the figure was insufficient to cover Aircel’s licence and spectrum dues. The ministry has been largely opposed to the cellco’s bankruptcy resolution plans as they hinge on the sale of the operator’s spectrum rights to repay its creditors. The DoT contends that the rights cannot be sold by resolution professionals (RPs) and should be returned to the government. The National Company Law Tribunal (NCLT) has asked the DoT to submit an affidavit on the matter by 22 July and Aircel’s RP will have until 28 July to respond. The court is set to make a decision on the resolution plan by 30 July. The outcome of the case is expected to have an impact on the resolution process for Reliance Communications (RCOM), which is also hoping to sell off its spectrum assets to help clear its debts.

India, Aircel, Department of Telecommunications (DoT), Reliance Communications (RCOM)

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