April 5, 2018 / 9:45 AM / 3 months ago

RCom says confident of speedy asset sale after Supreme Court relief

(Reuters) - Debt-laden Reliance Communications Ltd (RCom) said on Thursday that Supreme Court had lifted a high court stay on sale of some of its assets and allowed its secured lenders to proceed with the sale process.

A man speaks on his mobile phone as he walks past a closed shop painted with an advertisement of Reliance Communications in Mumbai, India, January 29, 2018. REUTERS/Shailesh Andrade/File Photo

The top court also directed the company and its secured lenders to file an appeal before the National Company Law Appellate Tribunal (NCLAT) on a stay granted by an arbitration court on the sale of RCom’s tower and fibre assets.

RCom will file an appeal on Friday and it is "confident of securing appropriate relief from the NCLAT to enable sale of tower and fibre assets to also be completed at the earliest," the company said in a statement bit.ly/2q6T4Fk.

The National Company Law Tribunal had prevented RCom from selling any asset without its permission, following a legal challenge from Swedish telecoms gear maker Ericsson, seeking payment of unpaid dues of 11.55 billion rupees ($177.7 million) by RCom and two of its units.

“There is now no bar in immediately completing the asset sale of spectrum, MCNs and real estate, and the same shall be concluded expeditiously,” the company, backed by businessman Anil Ambani, said.

The heavily indebted RCom is aiming to cut its obligations by selling most of its wireless assets to Reliance Jio Infocomm Ltd, owned by Anil Ambani’s elder brother and India’s richest man, Mukesh Ambani.

RCom shares closed 4.5 percent up in the Mumbai market that closed up 1.94 percent.

($1 = 65.0000 rupees)

Reporting by Aby Jose Koilparambil in Bengaluru; Editing by Biju Dwarakanath and Gopakumar Warrier

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