Mumbai NCLT approves Jio’s resolution plan for Anil Ambani’s Reliance Infratel

Mumbai, December 3: The Mumbai bench of the National Company Law Tribunal has approved Reliance Jio’s resolution plan for the Anil Ambani-owned Reliance Infratel. Following this, lenders of Reliance Infratel will receive about ₹4400 crore for the bankrupt company’s tower and fibre assets.

Reliance Infratel is a fully owned subsidiary of Reliance Communications.

The distribution of proceeds under the resolution is subject to disposal of the Doha Bank intervention application.

According to the plan approved by lenders, RCom and its subsidiary Reliance Telecom will go to UV Asset Reconstruction Company Ltd whereas the tower unit, Reliance Infratel, will go to Jio. The total consideration under this resolution plan of ₹20,000-23,000 crore will be paid over a period of seven years, Mint reported.

China Development Bank, LIC, State Bank of India, Exim Bank of China and Bank of Baroda are among 41 creditors to the bankrupt telecom company.

According to information available on the company’s website, RCom owed financial creditors ₹49,193.46 crore. Its assets are housed under three companies—RCom, Reliance Telecom and Reliance Infratel. They owe financial creditors ₹24,306.27 crore and ₹12,687.65 crore, respectively.

Reliance Communications thus owes debtors ₹86,187.58 crore at a consolidated level. This is besides the ₹28,837 crore it owes DoT in spectrum dues and other charges as well as the amounts it has to pay its operational creditors, Mint reported on Tuesday.

https://www.livemint.com/industry/telecom/mumbai-nclt-approves-jio-s-resolution-plan-for-anil-ambani-s-reliance-infratel-11606982393606.html