Companies

NCLT Mumbai approves Reliance Infratel’s resolution plan

Rajesh Kurup Mumbai | Updated on December 03, 2020 Published on December 03, 2020

RITL owns 43,000 telecom towers and 1.72 lakh km of fibre; lenders likely to recover ₹4,400 crore

The National Company Law Tribunal’s (NCLT) Mumbai bench on Thursday approved a resolution plan of Reliance Infratel Ltd (RITL), a wholly-owned subsidiary of Anil Ambani-controlled Reliance Communications (RCom), enabling lenders to recover about ₹4,400 crore.

The resolution plan was approved by all the members of the Committee of Creditors (CoC), sources close to the development said.

RITL owns 43,000 telecom towers and 1.72 lakh km of fibre, for which Mukesh Ambani-controlled Reliance Jio Infocomm (RJio) had earlier placed bids.

However, the distribution of the proceeds from the resolution plan is subject to disposal of an intervention application filed by Doha Bank.

Last year, a Doha Bank-led consortium, including three foreign lenders, moved NCLT challenging the dilution of their voting rights and seeking a stay on the CoC meetings. The consortium also moved the tribunal seeking to protect its rights over the proceeds generated from any resolution plan for RTIL.

RCom was referred to the NCLT in May last year after the creditors did not approve an offer from RJio.

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Published on December 03, 2020
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