Ericsson may have to repay its entire settlement with interest if Anil Ambani’s company is sent for liquidation

IANS
  • Insolvency proceedings could be revived, according to an Indian insolvency court
  • Recently in March, RCom sought to withdraw an earlier plea asking for an unconditional stay
  • Ericsson may be required to pay $80 million plus interest
Less than a month after Anil Ambani’s telco Reliance Communications was bailed out by brother Mukesh Ambani by settling $80 million in dues against Ericsson, an Indian court has hinted it may ask the latter to return that entire settlement amount plus interest should bankruptcy proceedings restart against RCom.

Hearing the RCom-Ericsson case, a judicial bench at the National Company Law Appellate Tribunal (NCLAT), reportedly said that all other creditors would have to be compensated as well if insolvency proceedings are revived.

“Why should one party take the amount and other creditors suffer and why should banks suffer? Why should the Indian economy suffer?” Financial Express reported citing Justice SJ Mukhopadhaya.

Last year, it was Ericsson that moved the National Company Law Tribunal’s Mumbai bench, an insolvency court, in an attempt to recover dues. However, a conditional stay was granted to RCom by the court, followed by Supreme Court’s February order against Anil Ambani to settle dues or face possible jail time on contempt of court charges.

However, recently in March, RCom sought to withdraw that plea, which could potentially revive insolvency proceedings against itself, which would in turn bring Ericsson back to the drawing board.

“We may either quash RCom bankruptcy proceedings in the NCLT or allow bankruptcy case to proceed,” the NCLAT bench, which will further hear the matter on April 30, reportedly said.


{{}}
Add Comment()
Comments ()
X
Sort By:
Be the first one to comment.
We have sent you a verification email. This comment will be published once verification is done.
Subscribe to whatsappSubscribe to whatsapp