RCom heads for insolvency

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The National Company Law Appellate Tribunal (NCLAT) on Tuesday allowed insolvency proceedings against Reliance Communication (RCom) after the debt-laden firm withdrew its petition challenging a decision of National Company Law Tribunal (NCLT) to initiate such proceedings.

The Anil Ambani-promoted firm had moved the application to withdraw its challenge to the insolvency order after the Board of the company on February 1 decided that it would file for insolvency as the attempts to revive the company failed.

The Board had said the lenders had received zero proceeds from the proposed asset monetisation plans and the overall debt resolution process was yet to make any headway.

RCom heads for insolvency

The Anil Ambani-promoted firm had moved the application to withdraw its challenge to the insolvency order after the Board of the company on February 1 decided that it would file for insolvency as the attempts to revive the company failed.

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But wait it will not effect Anil Ambani, big brother Mr. Narandra Modi will get you Billions of Dollar and put you in charge of Maintaining our Air defense.

 

[prasad1]

The Anil Ambani headed Reliance Communications has officially made its way to the inglorious club of bankrupt firms. On Thursday, the National Company Law Tribunal admitted RCom for insolvency proceedings. RCom via its resolution professional had pleaded the tribunal to consider excluding 357 days spent in litigation. It cited several stays in the process by the appellate tribunal and with the Supreme Court. The tribunal agreed to RCom's plea and has allowed it to be admitted for insolvency proceedings.


A detailed court order is awaited but a PTI report on Thursday confirmed the development.
This is the first ADAG [Anil Dhirubhai Ambani Group] company to be admitted for insolvency.

The bench comprising VP Singh and R Duraisamy were reported as saying that the matter should proceed in a manner of law and in view of the guidelines, the tribunal granted the exclusion of time for Reliance Infratel and Reliance Telecom along with RCom.

Also, the tribunal has superseded the existing RCom board and appointed a new resolution professional to run the company. SBI-led consortium of banks have been allowed to form a committee of creditors.

RCom's financial troubles have been well documented. It began its journey on 28th December 2002 as a major challenger to existing players. By 2010, Rcom had an established market-capitalisation of Rs 34,500 crores. In the same year, subscriber base was reported at 100 million. Hell broke loose, when RCom reported on 1st February that it was forced to initiate insolvency proceedings.

Soon, shareholders and market observers called the stock as a wealth-destroyer. The stock trading at a price of Rs 800 in 2008 touched to Rs 8 in 2019. The Anil Ambani headed company blamed Mukesh Ambani's Jio as unleashing a fierce price-war and thereby eating into its business.

But, two months ago Anil thanked elder brother Mukesh Ambani for paying Rs 458.77 crores. This timely pay-out to Swedish telecom manufacturer Ericsson helped Anil avoid a jail-term.

Read more at: http://www.sify.com/finance/nclt-de...-50000-crores-news-finance-tfkshUdfgihgj.html