RCom to begin insolvency process

By Guruveendar Singh 

Insolvency proceeding against Reliance Communications (Rcom) are set to begin, following the debt laden telco's inability to carry through the Re.25,000 crore deal between the Ambani brothers. The national company Law Appellate Tribunal (NCLAT), on last week approved  Rcom's application for lifting the moratorium on insolvency and bankruptcy, and directed that the moratorium on RCom's assets be maintained.
Rcom has moved insolvency proceeding in the Mumbai bench of the company Law Tribunal (NCLT), which will hear the case on may7.
The IBC process will begin with the appointment of an Insolvency Resolution Professional, a source in the know of the development told The hinndu. Rcom had moved the NCLAT on February 4, 2019 to withdraw its earlier appeal of stay on the proceeding for insolvency so that it could move ahead with the resolution plan through the NCLT process.
Reliance Jio is again tipped to be the sole bidder for RCom, a company that Mukesh Ambani nurtured but had to part with, with the division of the  Reliance empire on 2005. "Reliance Jio is running on RCom's towers, fibers, using Rcom's spectrum, so it is a natural bidder for RCom. But this time, Jio will have to submit a resolution plan for RCom and that will be much discounted compared to the deal agreed to between the Amabani brothers," said another source in the know of the development.

'Failed deal'
Reliance jio had earlier agreed to busy assets comprising towers, optic fibers, media convergence nodes nodes (MCNs) and spectrum assets for Re.25,000, but the transaction fell through as Reliance Jio refused take liabilities of past dues of Reliance comnunications, a pre-condition get the Department of Telecommunication's approval.
"Earlier, we were buying only assets that to submit a resolution plan for RCom. It's a different ball game.

"Let's wait and watch what comes out of it. with out RCom's assets also, we are self-sufficient in terms of spectrum towers and optic fiber," said a Reliance Jio senior officer.