Tuesday, October 23, 2018

RCom confirms it’s in advanced talks with Ericsson to settle dues

Friday, May 18, 2018, 10:05
This news item was posted in Business category and has 0 Comments so far.

Reliance Communications (RCom) Friday said that it is in “advanced” talks with Swedish gear maker Ericsson to resolve their dispute over the telco’s dues worth over Rs1,000 crore.“We confirm that RCOM and Ericsson are at an advanced stage of discussions to expeditiously resolve commercial issues. This will enable Reliance Communications to exit the NCLT (National Company Law Tribunal) process,” the Anil Ambani-owned telco said in a notice to the stock exchanges.The company added that it is confident of speedily proceeding with its plan to sell wireless assets to Reliance Jio for Rs18,000 crore to pare its Rs46,000 crore debt.“RCom is confident to expeditiously proceed with its monetisation plan with Reliance Jio and overall resolution plan with the lenders, keeping in mind the interests of all stakeholders,” the carrier said.The company’s stock, after rising nearly 25% in early trade Friday, was trading down 4.8% at Rs 15.75 on the BSE in late trade, after a news report that a settlement between RCom and Ericsson was unlikely. RCom’s notice to the exchanges came after the news report.The talks to settle the dues came a few days days after the National Company Law Tribunal admitted three petitions filed by Ericsson against the telco and its subsidiaries and ordered bankruptcy proceedings against RCom.If a pact is reached, the two parties would need to approach a higher court to exit the insolvency proceedings against RCom. A settlement outside the insolvency process, if allowed, may help RCom to move ahead with a plan to sell its wireless assets – spectrum, towers, fibre network and switching nodes – to Reliance Jio for Rs 18,000 crore and pare debt of Rs 46,000 crore.

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