RCom staggers on with bankruptcy extension to end of Feb

RCom staggers on with bankruptcy extension to end of February

06 January 2020 | Alan Burkitt-Gray

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The creditors of Reliance Communications (RCom) are likely to take another seven weeks to sell the company’s assets.

The process, governed by India’s National Company Law Tribunal (NCLT), was due to be completed on Friday, but the committee of creditors – representing claims of 490 million rupees ($6.8 million) are asking for an extension to the end of February.

The creditors have received bids from two rival telcos, Bharti Airtel and Reliance Jio, plus two independent investors for its assets, which include RCom’s towers, its fibre network, its data centres and 122MHz of spectrum.

A separate asset, Global Cloud Xchange (GCX), was split off last year and became an independent company in November 2019.

RCom chairman Anil Ambani (pictured) offered his resignation after the company posted a consolidated loss of 330 million rupees ($4.5 million) last year. However the committee of creditors rejected his resignation and has asked him to cooperate with the insolvency proceedings.

Meanwhile a report from India this morning says another part of the Anil Ambani Group, mortgage company Reliance Home Finance, is facing recovery proceedings from the NCLT. It is undergoing a bank-led resolution process with debts of 917 million rupees ($12 million).

According to reports last week, the other two bids for RCom assets are Varde, an alternative investment adviser specialising in distressed assets, and the UV Asset Reconstruction Company, which specialises in under-performing assets.