For a capital-starved economy, India shows little urgency to extricate good money stuck in failed businesses.
That was going to change after the adoption of a modern bankruptcy regime in May 2016. Alas, legal improvements not-withstanding, the culture of extending the life of bad loans to big businesses and pretending nothing is wrong with them is proving too hard to end.
Reliance Communications (RCom) plans to propose a similar debt resolution plan in the National Company Law Tribunal (NCLT) process which was being pursued earlier outside NCLT.
The Board of directors of RCom is eyeing a fast-track NCLT resolution in 2019, free of all uncertainties and challenges, and is confident of future prospects as a going concern under a new ownership on completion of the NCLT resolution process, the company said on Sunday.
The Supreme Court on Friday gave further three weeks time to Reliance Communications (RCom) and Reliance Jio Infocomm (RJio) to resolve among themselves as to who will be liable for the past dues of the former once the spectrum trading deal between the two is cleared by the government.
At its last hearing on January 7, the court gave time to the two sides till Friday to resolve the matter after RJio refused to give an undertaking that it would pay the dues of RCom, if any came to light, once the trading deal was through.
The Supreme Court on Monday asked Reliance Communications (RCom) and Reliance Jio Infocomm (RJio) to resolve among themselves as to who will pay the past liabilities of the former, once the spectrum trading deal between the two is cleared by the government. The court said this after Reliance Jio refused to give an undertaking that it will pay dues of the former, if any came to light, once the trading deal was through.
The Supreme Court on Thursday said it will hear on Monday the two contempt petitions, one filed by Reliance Communications against the department of telecommunications (DoT) and the other by Swedish telecom equipment manufacturer Ericsson India against RCom’s chairman Anil Ambani.
A bench led by Justice RF Nariman posted the petitions for hearing on Monday after both sides sought urgent hearing.
In a temporary relief to Anil Ambani’s Reliance Communications Ltd (RCom), pertaining to its spectrum deal with Reliance Jio Infocomm, the two companies have decided to extend the validity of the agreements to June 2019. The deal is hung in the air as the Department of Telecommunications (DoT) has refused to clear the deal over non-payment of dues by RCom.
Anil Ambani-led Reliance Communications Ltd said on Wednesday that it remains committed to paying its outstanding dues, even as the telco’s proposed deal with Mukesh Ambani-controlled Reliance Jio remains uncertain. RCom said it hopes to get long-awaited consent from DoT for its spectrum sale to Reliance Jio Infocomm.
With Reliance Jio on Wednesday sticking to its stand that it would not take the responsibility for past spectrum-related dues of Reliance Communications (RCom), the fate of the Rs 25,000-crore spectrum trading transaction between the two hangs in balance.
As a result, the department of telecommunications (DoT) has withheld the no objection certificate (NoC) it had undertaken to provide by December 17.
Shares of Indian telecom company Reliance Communications Ltd plunged as much as 13 percent on Wednesday after the Economic Times reported that Department of Telecommunications (DoT) rejected a proposed spectrum sale to Reliance Jio Infocomm Ltd. The RCom stock fell as much as 13.3 percent to Rs 13.65 per share on NSE. At 10.52am, RCom shares traded at 14.85 per share, down 5.71% from its previous close.
The Supreme Court on Friday asked the department of telecommunications (DoT) to grant a no objection certificate (NoC) to Reliance Communications to trade its spectrum with Reliance Jio Infocomm by Monday on the condition that its subsidiary, Reliance Realty, does not redeem the preferential shares without DoT’s nod.
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