Insolvency proceedings currently underway at the National Company Law Tribunal of Reliance Communications (RCom) may see some direction, with bids being submitted for the assets the company owns, according to Financial Express.
Against the total claim of debts to the tune of Rs 49,000 crore received by the resolution professional, the assets have reportedly been estimated to be around Rs 33,000 crore.
Airtel had submitted a bid earlier, but later withdrew when it was announced that the deadline for submission has been extended by 10 days.
Bidders apart from Airtel are Reliance Industries, Varde Partners and UV Asset Reconstruction Company (UVARC). There are expected to be at least nine bids in all for the assets held by the different companies — RCom, Reliance Telecom (RTL) and Reliance Telecom Infrastructure (RTIL), according to a report. This is because each of the four companies is expected to submit separate bigs for each company.
The Committee of Creditors of RCom is likely to open the bids on December 2, the last day for submission of the bids. NCLT has allowed the RP time till January 10, 2020 to complete the process.
The assets include the spectrum licence, the tower infrastructure and the cabling infrastructure. RCom’s Data Centres and Optic Fibre assets alone are sought to be acquired by a bidder, private equity firm I Squared Capital.
Ericsson, one of RCom’s creditors filed the insolvency petition following the RCom’s failure to settle its dues. Although Anil Ambani tried raising funds to elder brother Mukesh Ambani’s Reliance Industries, which had by that time entered the telecom business through Jio, the deal did not materialise as Reliance Industries refused to give an undertaking that the past dues of RCom will also be borne by it after taking over.
Anil Ambani had submitted his resignation earlier, but the Committee of Creditors turned it down and has asked him to join in resolving the debt crisis.