The Anil Ambani-led Reliance Communications has decided to opt for insolvency proceedings, according to a communique released by the company. “RCom board of directors decides upon implementation of debt resolution plans through NCLT framework,” the company said in the statement.
“The Board of Directors of RCom today reviewed the progress of the company’s debt resolution plans since the invocation of SDR on 2nd June 2017. 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,” said the statement.
“Accordingly, the Board decided that the Company will seek fast track resolution through NCLT, Mumbai,” the statement said.
“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,” it added.
In September last year, Ambani had announced that the cash-strapped Reliance Communications will be completely exiting the telecom business to concentrate on real estate in future.
The first priority for RCom, which is credited for democratising telecom services through cheaper offers in early 2000s, is to resolve its over Rs 40,000-crore debt, he had told shareholders at the company’s 14th annual general meeting.