MUMBAI/ NEW DELHI: The committee of creditors of
Reliance Communications (RCom) has unanimously approved the sale of its assets to Reliance Jio Infocomm and UV Asset Reconstruction Company (UVARC). While Jio had put in a Rs 4,700-crore bid for RCom’s tower & fibre assets, UVARC offered Rs 14,000 crore for the bankrupt telecom operator’s spectrum, real estate, enterprise & data centre businesses.
The resolution professional overseeing the sale of RCom’s assets will be filing the two proposals before the National Company Law Tribunal (NCLT) on Thursday to seek the quasi-judiciary body’s approval.
While Jio has proposed an upfront payment of Rs 3,600 crore, UVARC has proposed an upfront cash payment of Rs 15 crore. The asset reconstruction company will make the remainder payments in future after it monetises RCom’s properties.
The 100% approval by RCom’s committee of creditors is a major milestone as earlier the process had got delayed since lenders failed to come to an agreement. The lenders will have to wait for some more time to recover their dues as the transactions, specifically the sale of spectrum, requires the telecom regulator’s approval.
Although RCom has lost most of its customers, UVARC feels that it can recover a substantial amount by selling spectrum in 14 of India’s 22 telecom circles. Resolution professional had identified Rs 31,788-crore claims from financial creditors of RCom and Rs 22,455 crore from DoT. With SC directing telecom players to pay AGR dues to government, owner of RCom’s spectrum will have to clear the outstanding payments.
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