Reliance Communications to file for bankruptcy in NCLT too

New Delhi: Reliance Communications, which plans to file for bankruptcy said on Sunday that it will propose a similar debt resolution plan in NCLT as was being earlier pursued with creditors.

The company alleged that the “untenable” issues raised by telecom department that frustrated existing plan will be addressed under NCLT process.

“The company has been faced with various mostly, untenable issues raised by the Department of Telecommunications. These issues inter alia resulted in numerous legal issues at High Courts, TDSAT and the Supreme Court, which frustrated the existing plan and can now be addressed/ resolved under the NCLT process,” said the company.

RCom said that it  expects that challenges raised by minority lenders get sorted out through bankruptcy process where only 66 per cent creditors need to approve a plan against 100 per cent approval needed outside bankruptcy.

Reliance said that debt resolution plan remain unchanged, including sale of all telecom infrastructure assets, spectrum and development of its Navi Mumbai real estate projects spanning across 30 million square feet at the Dhirubhai Ambani Knowledge City complex and the sale of other realty assets.
RCom’s net debt stood at around $7 billion as of March 2017 when it last made the number public.

RCom said it expects substantial unsustainable debt and liabilities to stand extinguished under the NCLT process.

“The RCom Board therefore sees a fast-track NCLT resolution in 2019, free of all uncertainties and challenges. The Board remains confident on future prospects as a going concern under a new ownership on completion of the NCLT resolution process,” it said.