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After 18 months of unsuccessful attempts to revive the firm, the board of Reliance Communications (RCom) decided to take the debt-ridden telecom company to bankruptcy court. The company’s board, which met on Friday, has decided to move the National Company Law Tribunal (NCLT) under the Insolvency Bankruptcy Code, 2016.
Since its invocation of Strategic Debt Restructuring (SDR) initiated on June 2, 2017, the lenders have not received any proceeds from the asset monetisation plans, and the overall debt resolution process had not made any headway, the company said in a statement.
The company, controlled by billionaire Anil Ambani, cited lack of “complete approvals and consensus”, despite the more than 45 meetings, pendency of numerous legal issues at high courts, Telecom Disputes Settlement and Appellate Tribunal (TDSAT) and Supreme Court as reasons.
RCom and its two subsidiaries - Reliance Telecom and Reliance Infratel – will be firms that move NCLT seeking a resolution, while there will be no impact on the business and operations of other group companies such as GCX and Reliance IDC among others, it added.
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