TIL Desk/Business/London/ Reliance Communications has decided to opt for insolvency proceedings following its failure to sell assets for paying back its lenders, the Anil Ambani-led telecom firm said on Friday. RCom even failed to sell spectrum to Mukesh Ambani’s Reliance Jio, a deal that was expected to bring some relief to the cash-strapped company. “RCom board of directors decides upon implementation of debt resolution plans through NCLT framework,” the company said in a statement.
Swedish telecom gear maker Ericsson had filed the first petition before National Company Law Tribunal to invoke insolvency proceedings against RCom. The NCLT on the request of RCom had granted it time to clear dues to avoid insolvency proceedings. It is estimated that RCom has been reeling under debt of over Rs 46,000 crore.
The board of directors of RCom Friday reviewed the progress of the company’s debt resolution plans since the invocation of strategic debt resolution on June 2, 2017. The Board noted that despite the passage of over 18 months, lenders have received zero proceeds from the proposed asset monetisation plans, and the overall debt resolution process is yet to make any headway, the statement said.
