It's official, Anil Ambani-led RCom is bankrupt
The National Company Law Tribunal on Thursday admitted Anil Ambani-led Reliance Communications (RCom) for insolvency as it upheld the company's plea to exclude 357 days spent in litigation to get the bankruptcy process going.
RCom, which owes over Rs 50,000 crore to banks, has now been officially declared bankrupt after the NCLT on Thursday superseded its board and appointed a new resolution professional to run it and also allow the SBIled consortium of 31 banks to form a committee of creditors.
At the last hearing, RCom sought the exclusion of the period from May 30, 2018 to April 30, 2019 as the initial insolvency proceedings was stayed by the National Company Law Appellate Tribunal and later by the Supreme Court.
A bench comprising VP Singh and R Duraisamy said the matter should proceed in a manner of law and in view of the guidelines, the tribunal grants the exclusion of time for Reliance Infratel and Reliance Telecom along with RCom.
RCom had run into heavy losses due to the fierce price war in the telecom sector unleashed by elder brother Mukesh Ambani-run Reliance Jio which has been offering free calls and dirt-cheap data.
RCom's attempt to prevent bankruptcy proceedings from kicking in by selling spectrum to Reliance Jio did not work out as the government did not clear the deal.