TIL Desk/Business/Mumbai/ The lenders to Reliance Communications are unlikely to agree to the company’s request for the release of Rs 260 crore, which it received as income-tax refunds and is lying in its bank account, to pay Swedish equipment maker Ericsson, said sources. The lenders will put the request before their respective boards, but do not expect them to approve it.
“For all practical purposes, the banks may not allow RCom’s request as they have first charge over the company’s assets and on the escrow account. The banks’ decision to refer it to their boards may just be a formality to reject the request,” said a source close to the development.
On Wednesday, the Supreme Court had ordered RCom to pay Rs 550 crore to Ericsson within four weeks in accordance with an earlier undertaking given by promoter Anil Ambani.
A spokesperson for RCom was unavailable for comment. In a meeting held on Thursday evening, the RCom management, led by CEO Punit Garg, requested the bank representatives to release the amount so that it could repay the dues to Ericsson.
