Lenders to Reliance Communications (RCom), including China Development Bank and State Bank of India, have opposed the National Company Law Tribunal’S (NCLT) decision to initiate insolvency proceedings against the Anil Ambani-backed mobile operator.
The lenders have formally impleaded themselves in the proceedings before the National Company Law Appellate Tribunal (NCLAT), which will hear the case on Tuesday.
“The appeals filed in the NCLAT against the NCLT orders admitting RCom, Reliance Infratel and Reliance Telecom to the debt resolution process, and appointing the Interim Resolution Professional, were mentioned for urgent hearing today,” RCom said in a filing with stock exchanges.
“All banks and financial institutions of the above three companies have unanimously decided to oppose the NCLT debt resolution process. Major lenders, including China Development Bank, State Bank of India and Standard Chartered Bank, have formally impleaded to the appeal proceedings before the NCLAT,” RCom added.
The NCLT had admitted three insolvency petitions against RCom and its subsidiaries by Swedish telecom gear maker Ericsson to recover ₹1,150 crore in dues. As a result of this order, RCom cannot sell any of its assets till the case is finalised, jeopardising a deal with Mukesh Ambani’s Reliance Jio.
China Development Bank, which lent close to $1.78 billion to RCom, had also filed an insolvency suit at the NCLT’s Mumbai bench after the operator defaulted on loans. But the case was withdrawn after RCom announced a ₹39,000-crore asset monetisation plan. The banks fear this plan will be jeopardised if the company faces insolvency proceedings.