Reliance Communications has decided to file for bankruptcy before the Mumbai bench of National Company Law Tribunal. In a statement released on Friday, the embattled Anil Ambani-led telecom firm said that it has decided to implement debt resolution plans through the NCLT framework due to lack of consensus among the lenders and the several pending legal challenges impending progress at various stages.
"The Board of Directors of RCom today reviewed the progress of the company's debt resolution plans since the invocation of SDR on June 2, 2017. The Board noted that, despite the passage of over 18 months, lenders have received zero proceeds from the proposed asset monetization plans, and the overall debt resolution process is yet to make any headway," the debt-ridden telecom operator said in the statement.
Outlining the reasons behind the decision to go to the NCLT, RCom said that there is an absence of complete approval and consensus among 40 lenders, Indian and foreign, even after 45 meetings over the course of 12 months, as well as numerous legal issues pending at high courts, TDSAT and the Supreme Court.
Due to these factors, RCom has decided to seek fast track resolution through the NCLT, Mumbai, as it believes this will be in the best interests of all stakeholders. This move will ensure comprehensive debt resolution in a final, transparent and time-bound manner within the prescribed 270 days, the company said.
"RCom and only two of its subsidiaries, Reliance Telecom Ltd. and Reliance Infratel Ltd., will take appropriate steps shortly to implement the Board decision. There will be no impact on the business and operations of other subsidiaries of the company, including inter alia GCX, Reliance IDC, etc," the statement further read.