Reliance Communications’ efforts to sell its assets — part of its plan to pare debt — received a boost with subsidiary Reliance Infratel (RITL) reaching a settlement with minority shareholders.
RTIL, the tower arm of the Anil Ambani-backed RCom, informed the the National Company Law Appellate Tribunal (NCLAT) on Tuesday that it had reached a settlement with minority shareholders, including HSBC Daisy Mauritius, which holds a 4.26 per cent stake in the company.
Though the terms of the settlement were not disclosed, it paves the way for RTIL to proceed with its asset monetisation plan of ₹8,000 crore. However, the deal can be finalised only after the appellate tribunal lifts its stay.
RCom had moved the tribunal to get the stay vacated so that it could proceed with the sale of several of its assets. This included its mobile business — spectrum and optical fibre assets.
The National Company Law Tribunal (NCLT) had earlier admitted three insolvency petitions filed against RCom and its subsidiaries by Swedish telecom gear maker Ericsson to recover ₹1,150 crore in dues.
As a result of this order, RCom cannot sell any of its assets till the case is finalised, jeopardising a deal it has reached with Mukesh Ambani’s Reliance Jio.
On Tuesday, RCom offered an up-front payment of ₹500 crore to Ericsson in order to halt insolvency proceedings against it. Legal sources say the NCLAT bench, headed by Justice SJ Mukhopadhaya, also suggested a settlement between Ericsson and RCom.
Ericsson, an operational creditor, would not gain much if RCom’s assets were to go under the insolvency process. RCom’s dues to Ericsson total ₹1,200 crore. Urging a settlement, NCLAT listed the matter for Wednesday.
Separately, RCom has also offered a payment of ₹500 crore up front to Ericsson to halt the insolvency process