RCOM RP warns that failure to renew licences will end resolution process

12 Jul 2021

The resolution professional (RP) managing the bankruptcy proceedings for telco Reliance Communications (RCOM) has warned that the insolvency resolution process will collapse if the Department of Telecommunications (DoT) does not renew the provider’s licences when they expire later this month, the Economic Times reports. According to the RP, Deloitte, the expiry of the concessions would leave RCOM with nothing to sell and as a result, its 53 lenders would not be able to recover any of their funds. The development follows on the heels of the DoT’s rejection of RCOM’s request to renew its licences, with the ministry instructing the provider to first clear its Adjusted Gross Revenue (AGR)-related dues, totalling some INR260 billion (USD3.5 billion).

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