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RCom's committee of creditors to meet on Monday

PTI | New Delhi | Updated: 23-02-2020 15:18 IST | Created: 23-02-2020 15:18 IST
RCom's committee of creditors to meet on Monday

Reliance Communications (RCom) on Sunday said a meeting of the company's committee of creditors is scheduled to be held on Monday. "The 18th meeting of committee of creditors (CoC) of Reliance Communications Ltd is scheduled to be convened on Monday, February 24, 2020," RCom said in a regulatory filing.

No other details were disclosed. According to sources, the CoC on Monday will put to a vote asset bids received from UV Asset Reconstruction Company and Reliance Jio from which lenders are expected to recover around Rs 23,000 crore.

UV Asset Reconstruction Company is learnt to have placed a bid of around Rs 14,700 crore, while Reliance Jio has made an offer of Rs 4,700 crore for tower and fibre assets of Reliance Infratel Ltd. There will also be a clawback of Rs 4,300 crore of priority payments made to Chinese and Indian creditors. Jio placed bid for tower and fibre assets of Reliance Infratel Ltd (RITL) and UVARC for assets of RCom and Reliance Telecom Ltd.

RCom's secured debt is estimated to be around Rs 33,000 crore. Lenders submitted claims of around Rs 49,000 crore in August. Reliance Communications has put all of its assets on sale that include spectrum holding of 122 megahertz (MHz), tower business, optical fibre network and data centres.

According to an order by the National Company Law Tribunal, the CoC had to complete the entire process by January 10 but it sought extension in deadline. The resolution professional, Deloitte, is expected to file resolution plan with the NCLT Mumbai on March 5. RCom in the past had tried to sell assets to various companies, including Reliance Jio, to clear debt but the deals did not crystallise. Reliance Jio cancelled agreement to buy RCom assets, including spectrum, as it did not want to bear the past liabilities of the debt-ridden firm.

Later, the insolvency proceedings against RCom started on a plea filed by Swedish telecom gear maker Ericsson after the company failed to clear its dues.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

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