by admin | May 25, 2021 | News
New Delhi : The Supreme Court on Wednesday directed Reliance Communications to pay Rs 453 crore to Ericsson India within four weeks failing which its chairman will have to undergo a three-month sentence.
A bench of Justice Rohinton Fali Nariman and Justice Vineet Saran directed the court’s Registry to give Ericsson Rs 118 crore that were earlier deposited by RCOM.
The court said that the entire amount that RCOM has to pay to Ericsson is Rs 550 crore plus the interest that was generated.
The court also imposed a fine of Rs 1 crore each on RCOM, Reliance Telecommunication and Reliance Infratel that would be deposited with the Supreme Court Legal Services Committee (SCLSC).
In case of default the Chairman of all three companies would have to undergo sentence of one month each.
The bench ordered this as it did not accept the “unconditional apology” tendered to the court by the RCOM Chairman.
RCOM Chairman Anil Ambani was present in the court when the order was announced.
—IANS
by admin | May 25, 2021 | Business, Emerging Businesses, Investing
New Delhi : Reliance Infratel, a subsidiary of Reliance Communications (RCOM), has informed the National Company Law Appellate Tribunal (NCLAT) on Tuesday that an amicable settlement has been arrived at with its minority investors holding 4.26 per cent equity in the company, and consent terms will be filed shortly.
In a regulatory filing, RCOM said: “The settlement with the minority investors paves the way for vacation of the stay granted by the NCLT on the sale of RITL’s tower and fibre assets, and will enable the company to proceed with asset monetisation of Rs 8,000 crore as soon as the company exits the debt resolution process under NCLT, for which its appeal, supported by all its lenders, is fixed for hearing today i.e. , that is, Tuesday, May 29, 2018 before the Hon’ble NCLAT.”
—IANS
by admin | May 25, 2021 | Corporate, Corporate Buzz
Rajnish Kumar
New Delhi : A day after Reliance Communications (RCOM) announced it was selling its wireless assets to Reliance Jio, State Bank of India Chairman Rajnish Kumar on Friday termed it a good development and would hopefully set an example for other promoters.
“It is a very good and welcome development. The banks have been fully protected and no loss is expected. Despite the fact that there is a stress in the telecom sector, I am hoping that this will set a very good example for the other promoters also of the companies which are under stress,” Kumar told BTVi in an interview.
Reliance Jio Infocomm (RJIL), a subsidiary of Reliance Industries Limited, on Thursday announced signing of a “definitive agreement” for the acquisition of specified assets of RCOM and its affiliates.
Consequent to the agreement, Jio or its nominees will acquire assets under four categories — towers, optic fibre cable network, spectrum and media convergence nodes — from RCOM and its affiliates, Jio said in a statement on Thursday.
RCOM’s assets which were put up for monetisation include 122.4 MHz of 4G Spectrum in the 800/900/1800/2100 MHz bands, over 43,000 towers, around 1.78 lakh km of fibre with pan-India footprint and 248 media convergence nodes, covering five million sq ft used for hosting telecom infrastructure.
Reliance Group Chairman Anil Ambani had on Tuesday said the company has achieved full resolution of Reliance Communications’ debt, reducing it by Rs 25,000 crore to Rs 6,000 crore by monetising assets.
RCOM bonds jumped from 34 cents to 55 cents on announcement of asset sales to Jio, according to industry sources.
“RIL’s acquisition of RCOM’s wireless telecom infrastructure, while not entirely surprising, does bring synergies for RIL’s telecom business which currently has lease/sharing arrangements with RCOM for some of its existing infrastructure – spectrum, towers and optic fibre backbone,” analyst Morgan Stanley said in a report.
Maintaining its upward trajectory RCOM shares were trading at Rs 34.98 per share, up 12.98 per cent at 12.37 p.m. at the BSE.
—IANS
by admin | May 25, 2021 | Business, Large Enterprise
Mumbai : Reliance Group Chairman Anil Ambani on Tuesday said the company has achieved full resolution of Reliance Communications’ (RCOM) debt reducing it by Rs 25,000 crore, to Rs 6,000 crore.
“We have achieved resolution that involves Reliance Communications exiting strategic debt recast. Clearly and truly this is a historical achievement for any group. RCOM debt will reduce by Rs 25,000 crore, The entire monetisation process to repay debt of lenders will be completed by January-March 2018 in a phased manner,” Ambani told reporters here.
Reliance Communications had close to Rs 45,000 crore debt on its books in October 2017, he had said. The RCOM stock rose sharply on announcment, closing at 30 per cent high at Rs 21.33.
Saying that going forward Reliance Communications will be a buisness-to-business (B2B) company, he added the company achieved this debt restructuring by asset monetisation and selling real estate”
“The new company will have a debt of Rs 6,000 crore,” he said.
The reduction would allow RCOM to provide “zero write-offs to all lenders and bondholders.”
“There will be no conversion of debt to equity as well,” Ambani said.
He said the company had faced a lot of headwinds in the last few months with respect to National Company Law Tribuna”.
“It was challenge…how do you really manage 35 global and Indian banks to come on the same page?” Ambani said.
He said for the new RCOM 50 per cent of revenue will come from outside India.
“Reliance Communications will be now one of the strongest entreprise business of India,” Ambani added.
—IANS
