Nifty99000 100%

Sensex99000 100%

Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
RSS

News

NCLAT permits RCOM to sell assets

Author: IANS/Friday, April 6, 2018/Categories: Telecom

NCLAT permits RCOM to sell assets

New Delhi, April 6 - Clearing the decks for selling the complete assets of Reliance Communications, the National Company Law Appellate Tribunal (NCLAT) on April 6 vacated the stay on its tower and fiber asset sale.

It has allowed the execution of sale deeds to proceed, directing the sale proceeds to be deposited in an escrow account with the State Bank of India (SBI).

The NCLAT has ordered the final hearing on the matter on April 18, when it will decide on the allocation of proceeds.

"As directed by the Hon'ble Supreme Court, RCOM moved the Hon'ble NCLAT on April 6 for vacation of the stay in relation to sale of its tower and fiber assets. The Hon'ble SC had itself vacated the stay in relation to spectrum, MCNs (media convergence network) and real estate yesterday," a RCOM spokesperson said in a statement.

"By an interim order passed today, the NCLAT has vacated the remaining stay, and allowed execution of sale deeds and deposit of the proceeds with SBI in an escrow account. Based on these orders, RCOM can now proceed with completion of its entire asset monetisation plan, covering spectrum, towers, fiber, MCNs and real estate," the spokesperson added.

The company said it is now very confident of achieving overall debt reduction of around Rs 25,000 crore within the next few weeks.

"Based on legal advice, RCOM believes the claim of the minority investors in the tower and fiber proceeds, which is fully disputed by RCOM, can at best be Rs 200-300 crore," the spokesperson added.

The Supreme Court on Thursday cleared the decks for the sale of its assets, including spectrum, to Reliance Jio Infocomm as it vacated a stay granted by the High Court.

RCOM can also part with its assets involving media convergence network (MCN) and real estate.

A bench comprising Justice Adarsh Kumar Goel and Justice Rohinton Fali Nariman set aside the stay by the Bombay High Court, which had re-affirmed a restriction by the arbitration tribunal on the sale of the company's spectrum and optical fibre assets.

RCOM's plea challenging the High Court stay was supported by the consortium of banks headed by the SBI, which had contended that the sale of spectrum and optical fibre assets would fetch Rs 25,000 crore -- part of Rs 45,000 crore that RCOM owes them.

Reliance Group Chairman Anil Ambani on December 26 said the company has achieved full resolution of RCOM's debt, reducing it by Rs 25,000 crore to Rs 6,000 crore by monetising its assets.

"We have achieved full resolution that involves Reliance Communications exiting strategic debt recast. What we have achieved, in the face of extraordinary challenges, is truly historic and unprecedented in Indian corporate history. RCOM debt will reduce by Rs 25,000 crore. The entire monetisation process to repay debt of lenders will be completed by January-March 2018 in a phased manner," Ambani had said.

Ambani said that in the debt reduction, there would be no write-off for any lender or bondholder. "There will be no conversion of debt to equity as well," Ambani added. Reliance Communications had close to Rs 45,000 crore debt on its books in October 2017, he had said.

Print Rate this article:
No rating

Number of views (75)/Comments (0)

Kavita Giridhar Mallya

IANS

Other posts by IANS
Contact author

Leave a comment

Name:
Email:
Comment:
Add comment

Name:
Email:
Subject:
Message:
x

Videos

Ask the Finapolis.

I'm not a robot
 
Dharmendra Satpathy
Col. Sanjeev Govila (retd)
Hum Fauji Investments
 
The Finapolis' expert answers your queries on investments, taxation and personal finance. Want advice? Submit your Question above
Want to Invest
 
 

Categories

Disclaimer

The technical studies / analysis discussed here can be at odds with our fundamental views / analysis. The information and views presented in this report are prepared by Karvy Consultants Limited. The information contained herein is based on our analysis and upon sources that we consider reliable. We, however, do not vouch for the accuracy or the completeness thereof. This material is for personal information and we are not responsible for any loss incurred based upon it. The investments discussed or recommended in this report may not be suitable for all investors. Investors must make their own investment decisions based on their specific investment objectives and financial position and using such independent advice, as they believe necessary. While acting upon any information or analysis mentioned in this report, investors may please note that neither Karvy nor Karvy Consultants nor any person connected with any associate companies of Karvy accepts any liability arising from the use of this information and views mentioned in this document. The author, directors and other employees of Karvy and its affiliates may hold long or short positions in the above mentioned companies from time to time. Every employee of Karvy and its associate companies is required to disclose his/her individual stock holdings and details of trades, if any, that they undertake. The team rendering corporate analysis and investment recommendations are restricted in purchasing/selling of shares or other securities till such a time this recommendation has either been displayed or has been forwarded to clients of Karvy. All employees are further restricted to place orders only through Karvy Consultants Ltd. This report is intended for a restricted audience and we are not soliciting any action based on it. Neither the information nor any opinion expressed herein constitutes an offer or an invitation to make an offer, to buy or sell any securities, or any options, futures or other derivatives related to such securities.