India's bankruptcy appeal court defers RCom-Ericsson case hearing
RCom time until Wednesday to reach a settlement with Ericsson.
Swedish telecom gear maker Ericsson is seeking Rs. 11.55 billion ($170.22 million) from RCom and two of its units.
RCom on Tuesday offered an upfront payment of Rs 500 crore to its operational creditor Ericsson, which has got an insolvency order against the Anil Ambani group firm.
During the proceedings before the National Company Law Appellate Tribunal ( NCLAT), senior advocate Kapil Sibal, appearing for RCom, suggested an upfront payment.
To this, the NCLAT bench headed by Chairman Justice S J Mukhopadhaya suggested settlement between parties.
“You know the fate of operational creditors [in corporate resolution process]. You may not even get 5 per cent. If you want we would give you time for settlement,” the bench said.
Ericsson had total dues of Rs 978 crore, which have now increased to Rs 1,600 crore, counsel appearing for Ericsson informed.
“If you want, we can allow settlement. Find out ways and means to solve the issue,” the bench said.
The tribunal has listed for tomorrow the hearing of interim prayer of RCom to stay the National Company Law Tribunal (NCLT) order, which has directed to start insolvency proceedings against it over the Ericsson plea.
During the proceedings, Mr. Sibal said that RCom had a total debt of around Rs 46,000 crore.
He said that RIL’s Jio, which is buying RCom’s assets, has offered Rs 17,000 crore of upfront payment along with spectrum dues and transfer of debts.
On May 15, the Mumbai bench of the NCLT admitted an insolvency petition filed by Ericsson against Reliance Communications and two of its subsidiaries seeking to recover unpaid dues.
Ericsson, which had signed a 7-year deal in 2014 to operate and manage RCom’s nationwide telecom network, had alleged that it had not been paid the dues.
Last September, the Swedish company filed a petition in the NCLT’s Mumbai bench seeking liquidation of the telecom operator to recover Rs 1,150 crore that RCom allegedly owes it.
from The Hindu - Business https://ift.tt/2kyCqLy
Swedish telecom gear maker Ericsson is seeking Rs. 11.55 billion ($170.22 million) from RCom and two of its units.
RCom on Tuesday offered an upfront payment of Rs 500 crore to its operational creditor Ericsson, which has got an insolvency order against the Anil Ambani group firm.
During the proceedings before the National Company Law Appellate Tribunal ( NCLAT), senior advocate Kapil Sibal, appearing for RCom, suggested an upfront payment.
To this, the NCLAT bench headed by Chairman Justice S J Mukhopadhaya suggested settlement between parties.
“You know the fate of operational creditors [in corporate resolution process]. You may not even get 5 per cent. If you want we would give you time for settlement,” the bench said.
Ericsson had total dues of Rs 978 crore, which have now increased to Rs 1,600 crore, counsel appearing for Ericsson informed.
“If you want, we can allow settlement. Find out ways and means to solve the issue,” the bench said.
The tribunal has listed for tomorrow the hearing of interim prayer of RCom to stay the National Company Law Tribunal (NCLT) order, which has directed to start insolvency proceedings against it over the Ericsson plea.
During the proceedings, Mr. Sibal said that RCom had a total debt of around Rs 46,000 crore.
He said that RIL’s Jio, which is buying RCom’s assets, has offered Rs 17,000 crore of upfront payment along with spectrum dues and transfer of debts.
On May 15, the Mumbai bench of the NCLT admitted an insolvency petition filed by Ericsson against Reliance Communications and two of its subsidiaries seeking to recover unpaid dues.
Ericsson, which had signed a 7-year deal in 2014 to operate and manage RCom’s nationwide telecom network, had alleged that it had not been paid the dues.
Last September, the Swedish company filed a petition in the NCLT’s Mumbai bench seeking liquidation of the telecom operator to recover Rs 1,150 crore that RCom allegedly owes it.
from The Hindu - Business https://ift.tt/2kyCqLy
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