The Telegraph
Thursday , September 14 , 2017

Ericsson in tussle with R-Com

Mumbai, Sept. 13: Ericsson India Private Ltd (Ericsson) has dragged Anil Ambani-owned Reliance Communications (R-Com) to the National Company Law Tribunal (NCLT)

An unsecured operational creditor of R-Com, Ericsson today filed a petition at the NCLT, Mumbai bench, under Section 9 of the Insolvency and Bankruptcy Code (IBC) to recover Rs 491.41 crore.

Ericsson had also filed similar petitions against Reliance Infratel Ltd and Reliance Telecom Ltd, subsidiaries of R-Com, to recover Rs 534.75 crore and Rs 129.34 crore, respectively, a R-Com statement said.

While the NCLT adjourned the matter to September 26 after hearing both the parties, R-Com said it intended to challenge the petitions.

The news saw R-Com shares dropping about 4 per cent on the Bombay Stock Exchange. The scrip ended at Rs 21.80, a drop of 3.75 per cent.

Last month, the NCLT had admitted a petition by R-Com for the merger of its wireless business with Aircel.

It had also admitted a petition from the Anil D Ambani firm for the sale of a 51 per cent stake in its tower arm to Brookfield of Canada.

Both the deals are vital for R-Com because if they do not go through by December, lenders may exercise the right to convert their debt in the company to equity under the resolution mechanism.

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