Reliance Communications and its lenders, on Sunday, rejected the resignations of Anil Ambani and four other directors and asked them to co-operate in the on-going insolvency process of the company.
Ambani along with four directors -- Ryna Karani, Chhaya Virani, Manjari Kacker and Suresh Rangachar -- had submitted their resignations from the company on November 16. Anil Ambani's resignation as a director meant that he ceased to be the chairman of the telecom company.
According to a filing with the stock exchanges, the Committee of Creditors of Reliance Communications Limited (RCOM) at its meeting held on November 20 considered the resignations tendered by the directors and expressed a unanimous view that the resignations cannot be accepted.
They instructed the directors to continue with their duties and responsibilities as directors and provide all cooperation in the corporate insolvency resolution process, at least until the completion of the insolvency resolution process of RCOM.
The resignation of the directors comes after the telco reported a mammoth consolidated loss of Rs 30,142 crore for the second quarter of FY19. The loss was recorded after provisioning for the statutory license fee and spectrum usage fee against a profit of Rs 1,141 crore, as per the October 24 Supreme Court verdict.
This had marked the second highest loss posted by any Indian corporate till date, after Vodafone Idea Ltd's Rs 50,921 crore losses. Bharti Airtel, the second largest telecom player, reported a loss of Rs 23,000 crore in the July-September quarter this year.