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Reliance Communication gets final go ahead for asset sale from National Company Law Appellate Tribunal (NCLAT)

Team SoOLEGAL 7 Apr 2018 5:05pm

Reliance Communication gets final go ahead for asset sale from National Company Law Appellate Tribunal (NCLAT)

New Delhi: Beleaguered  Reliance Communications Ltd (RCom) which a day before received a partial relief from SC which allowed it to sell spectrum and real estate on Friday received a favourable order from NCLAT which allowed it to sell fibre and towers too. This will allow the company to execute Rs25,000 crore asset sale programme to Jio and avoid bankruptcy proceedings.

The order was given by judge S.J. Mukopadhaya who heard Reliance Infratel appeal against March 12 order of Mumbai bench of NCLT which had stayed the sale of assets. The Reliance Counsel pleaded before the judge that selling of assets is imperative as value was depreciating with every passing moment. The money received from the sale would be used to pay off Reliance Group companies’ Rs45,000 crore debt owed to various banks, he stated.

The Mumbai bench had given a stay on the plea moved by HSBC Daisy Investments (Mauritius) Ltd, alleging oppression of minority shareholders and mismanagement by the company. Besides Ericsson,the Swedish equipment maker had also filed an application asking for stopping of sale until its dues worth Rs 1025 crore were paid.

“By an interim order... the NCLAT has vacated the remaining stay, and allowed execution of sale deeds and deposit of the proceeds with SBI (State Bank of India) in an escrow account. Based on these orders, RCom can now proceed with completion of its entire asset monetization plan, covering spectrum, towers, fibre, MCNs (media convergence nodes) and real estate,” an RCom spokesperson said in a statement.

“RCom is now very confident of achieving overall debt reduction of approximately Rs25,000 crore within the next few weeks,” the spokesperson said, adding that the distribution of proceeds of only the tower and fibre assets will be subject to the final decision of the NCLAT on 18 April.

Tagged: Rcom   SC   JIO   Ericsson   NCLAT  
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