Anil Ambani’s Reliance Communications on Friday said it has decided to file for bankruptcy through the National Company Law Tribunal after failing to sell assets to pay up debt of around Rs 45,000 crore, reported The Indian Express.
“The Board of Directors of RCom today [Friday] reviewed the progress of the company’s debt resolution plans since the invocation of SDR [strategic debt resolution] on 2nd June 2017,” the company said in a statement. “The Board noted 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.”
The statement said the board decided that the company will “seek fast track resolution” through the law tribunal in Mumbai. “The board believes this course of action will be in the best interests of all stakeholders, ensuring comprehensive debt resolution in a final, transparent and time bound manner within the prescribed 270 days.”
The statement cited “unresolved challenges”, pending legal issues at high courts, and the Supreme Court for the insolvency proceedings.
Reliance Communications had planned to sell spectrum to Mukesh Ambani’s Reliance Jio, but it did not materialise. The company had hoped to sell its assets to Jio and some other firms in a bid to pare its debt.
In 2017, Swedish telecom gear maker Ericsson had filed insolvency petitions against Reliance Communications and two of its companies to recover unpaid dues of Rs 1,150 crore. Ericsson later filed a contempt plea against Anil Ambani for failure to pay up the dues.
In January, the Supreme Court issued a notice to Ambani seeking a response on Ericsson’s contempt petition.
The Congress, responding to the company’s move, targetted Narendra Modi, saying the prime minister could help Anil Ambani “by signing over another defence contract he is completely unqualified to handle”.