Reliance Communications shareholders vent ire over bankruptcy

Investors' concerns on the future of the bankrupt Reliance Communications dominated the companys yearly shareholder meet on Monday. This was the first such annual general meeting to be addressed by the court-appointed resolution professional after the company filed for bankruptcy.

Anish Nanavaty of consultancy firm Deloitte, the RP, informed the shareholders that the National Company Law Tribunal (NCLT) has granted an additional three months to complete the corporate resolution process, which will now have to be completed by January 10 next year. The bids for the company are in the process of getting invited and there will be a preference for a single bidder to pick up the entire company, Nanavaty said.

The dais comprised of chairperson Chhaya Virani sitting on one side of Nanavaty, while a legal advisor sat on the other. Company management, including director Manikantan V was also present. Many shareholders specifically sought to understand what was the RPs thinking on the way ahead and requested for a detailed presentation, and also the fate of the 132-acre Dhirubhai Ambani Knowledge City in Navi Mumbai, the biggest asset it holds.

One particular shareholder warned the RP not to go ahead with any plan against the owners consent while the more optimistic also said that the RP should press for banks to covert equity and the other one opined the worlds biggest tech firms will be keen to invest in the company. Replying to the concerns, queries and suggestions, Nanavaty said his priority is to keep the company as a growing concern and affirmed that all the decisions will be consulted with the committee of creditors.

He also informed the shareholders that the company has received claims from all creditors totalling Rs 84,628 crore. Three items, including confirmation of the financial statements, the reappointment of executive director Punit Garg and the fees for the auditor were put to vote and Virani called-off the meeting..

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