Anil Ambani Led Reliance Communication Opts for Insolvency - Fails to Repay its Debts
Telecom firm Reliance Communication led by Anil Ambani has decided to opt for insolvency proceedings. This decision is taken due to its failure in selling the assets and in repaying back it's lenders.
It is estimated that Reliance Communications has been reeling under debt of over Rs 46,000 crore. The company is opting for insolvency proceedings through National Company Law Tribunal (NCLT). NCLT is the court that deals with bankruptcy cases to overcome debts.
The company through its official statement said, “RCom board of directors decides upon implementation of debt resolution plans through NCLT framework. The Board of Directors of RCom today reviewed the progress of the company’s debt resolution plans since the invocation of SDR on 2nd June 2017.
The Board noted that despite the passage of over 18 months, lenders have received zero proceeds from the proposed asset monetisation plans, and the overall debt resolution process is yet to make any headway.
"The statement further read, Accordingly, the Board decided that the company will seek fast track resolution through NCLT, Mumbai. The Board believes this course of action will be in the best interests of all stakeholders, ensuring comprehensive debt resolution in a final, transparent and time-bound manner within the prescribed 270 days.”