In another relief for debt-laden Reliance Communications, Mumbai-based Smartphone has withdrawn a petition seeking insolvency of the company filed before the National Company Law Tribunal (NCLT). The petition, filed under Insolvency and Bankruptcy Code (IBC), was withdrawn on Friday.
Smartphone is a wholesale dealer of batteries and had supplied to telcos, including RCom.
The Mumbai NCLT bench — comprising MK Shrawat and BP Mohan — disposed of Smartphone petition as ‘withdrawn’.
Earlier in January, RCom’s biggest foreign lender China Development Bank (CDB) withdrew a similar petition seeking insolvency of the company. RCom owes CDB and other Chinese banks about $2 billion, and the lender had filed the petition in November, citing a large amount of loan principal and interest payments overdue.
The move came following the deal between RCom and Reliance Jio in December, wherein the latter acquired most of the wireless assets of the debt-ridden company.