- The financial creditors of RCom have filed a motion in the NCLT to form a committee of creditors and appoint a resolution professional - a necessary precursor to initiating full-fledged insolvency proceedings.
- Concurrently, RCom is hoping for an exclusion of the last 13 months in the insolvency process after initial proceedings commenced last April. Under the Insolvency and
Bankruptcy Code, a resolution has to be completed within 270 days. - RCom owes around 31 creditors - mainly the State Bank of India - around ₹500 billion.
Concurrently, RCom is hoping for an exclusion of the last $4 in the insolvency process. The company has asked the interim resolution professional for an exclusion from end-April 2018 to end-May 2019 as the initial insolvency proceedings were stayed by the National Company Law Appellate Tribunal and Supreme Court.
Under the Insolvency and Bankruptcy Code, a resolution has to be completed within 270 days.
RCom owes around 31 creditors - mainly the State Bank of India - around ₹500 billion. The cash-strapped company discontinued its core telecom business two years ago after the entry of Mukesh Ambani-led Jio.
In an interesting turn of events, it was actually counting on the sale of spectrum to Jio to stay afloat, $4 because it would have meant taking partial responsibility for RCom’s dues.
RCom was counting on the deal, which involves the sale of around ₹200 billion worth of spectrum to Jio, to restructure its debt and settle its dues with a range of creditors, most notably, Ericsson, which is still waiting on a ₹5.5 billion principal payment in addition to interest.
After Ericcson took RCom to court and Anil Ambani was threatened with jail time, Mukesh Ambani $4and helped his brother pay down the outstanding amount.
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