RCom continues to pursue deal with RJio outside NCLT process

Debt-ridden Reliance Communications’ (RCom) plans to approach the National Company Law Tribunal (NCLT) for debt resolution is similar to what the firm is pursuing outside the Tribunal. The company also continues to pursue the deals with Reliance Jio Infocomm (RJio) outside the NCLT.

“We are not filing any bankruptcy or insolvency petition, but we are moving the debt resolution plan currently being pursued to NCLT,” a senior RCom official told BusinessLine . He denied a series of media reports that mentioned the company is filing for bankruptcy proceedings under the Insolvency and Bankruptcy Code, 2016.

The management will propose a similar resolution plan in the NCLT process as hitherto pursued outside. The key elements of the process remain the same and is better, as under the majority rule NCLT needs 66 per cent approvals of minority lenders against the 100 per cent outside, the company said in a statement.

The sale of all telecom infrastructure, assets and spectrum, strategic monetisation of its wholly-owned subsidiary GCX, the Indian Data Centres and Indian enterprise business and the development of 30 million sq ft at the Dhirubhai Ambani Knowledge City, along with the sale of other real estate assets remain the same, it added.

Under the NCLT process, “untenable issues” raised by the Department of Telecommunications (DoT) and minority lenders’ demands among others will be addressed.