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NCLT begins bankruptcy process for Anil Ambani’s Reliance Communications

The lenders of Reliance Communications (RCom) on 07.05.19 moved NCLT to appoint a new resolution professional and  constitute a committee of creditors and the first step to initiate the bankruptcy process of the Anil Ambani owned group company that owes around Rs 50,000Crore to 31 lenders led by State Bank of India.

Meanwhile, RCom through the present resolution professional, sought 13 months exclusion in the insolvency process stating the stays it had on the process by the appellate tribunal and the Supreme Court.

The Resolution professional sought the exemption from April 30, 2018, to May 30, 2019, as the initial insolvency proceedings were stayed by the National Company Law Appellate Tribunal (NCLAT) and later by the Supreme Court.

RCom was in deep water for years, forcing it to discontinue its operations 2 years ago. Its attempts to stay off bankruptcy by selling spectrum to Reliance Jio got dismanted after the lengthy legal and government delays for approvals.

On May 3, SBI held a meeting to shortlist a Resolution Professional after issuing a request for proposal in April for a new RP.

RCom’s committee of creditors will now have to approve a new RP with a 66 per cent vote after the NCLT starts the insolvency process.

The Mumbai bench comprising of VP Singh and Ravikumar Duraisamy directed the existing RP to file a progress report by May 30 when it will hear the matter.

 

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