RCom says confident of completing asset sale to Reliance Jio on time

Anil Ambani-led Reliance Communications said it is confident of completing the sale of the assets related to its mobile network to Reliance Jio on time.

The company’s statement was in the context of the Supreme Court refusing to give any urgent relief on the stay imposed on the asset sale by the National Company Law Tribunal.

“As legally advised, RCOM remains confident that its asset monetisation programme will be completed expeditiously to protect the interests of its secured lenders, much in advance of the time limit of 31st August, 2018 prescribed by the RBI for resolution of such cases,” it said.

It confirmed that the Supreme Court has not issued any stay order against the NCLT order that imposed a stay on the transaction in the light of claims filed by some investors in the company’s tower subsidiary and Ericsson, a vendor of services to the mobile business. However, neither has the court dismissed its plea.

“RCOM and its Lenders led by SBI have filed Special Leave Petitions in the Hon’ble Supreme Court against the stay granted by two lower Courts on sale of certain assets by the Company,” it said in a statement.

“The SLPs were heard today, and notices have been issued to the Respondents, Ericsson and minority investors holding approximately 4% in Reliance Infratel, allowing them time to file their replies by 28th March, 2018.

“In view of intervening Court holidays on 29th and 30th March, 2018, the matter has been fixed for hearing in the subsequent week on Thursday, 5th April, 2018,” it added.

The vacation of the stay is crucial for the telecom services company as it cannot go forward with its three-stage debt restructuring program without selling the assets to Reliance Jio.

In light of the restructuring that seeks to liquidate most the company’s assets to pay its secured creditors, Swedish telecom services company Ericsson initiated arbitration against the company, claiming dues of around Rs 1,150 cr for the services that it has been providing. Ericsson, as a vendor of services, is an unsecured creditor, and unsecured creditors have a lower claim than secured creditors.

RCom disclosed more details about its restructuring program yesterday.