Mumbai: Reliance Communications Ltd is soon set to file insolvency proceedings at the National Company Law Tribunal (NCLT), Mumbai, for bankruptcy protection. The debt-laden telecom company is seeking to repay lenders, sell asset and cut its Rs 42,000-crore loan in 270 days — something that the Anil Ambani-owned company has failed to do in the last 18 months. Reliance Communications has also been unable to complete its Rs 18,000 crore asset-sale plan because of a number of legal hurdles and the lack of consensus among over 40 Indian and foreign lenders.
"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 company said in a statement.
Reliance Communications and its two units, Reliance Telecom Ltd (RTL) and Reliance Infratel Ltd, will shortly move towards a fast-track resolution through the NCLT, Mumbai, the company said.
The consortium of lenders includes China Development Bank and State Bank of India. Others comprise Canara Bank, Union Bank, IDBI Bank, HSBC and Standard Chartered Bank.
"The board believes this course of action will be in the best interests of all stakeholders, ensuring comprehensive debt resolution in a final, transparent and time-bound manner within the prescribed 270 days," the company said.
The move implies that RCom's deal to sell 43,000 telecom towers and 122.4 MHz of spectrum to Reliance Jio, along with some real estate to Canada's Brookfield will get cancelled. However, the company has already finished the sale of fibre and nodes for Rs 5,000 crore.