DoT tug-of-war with Reliance Communications
The committee of creditors of Reliance Communications Ltd (R-Com) met on Monday in the wake of the insolvency proceedings initiated against promoter Anil Ambani and the department of telecommunications’ (DoT) demand that spectrum should not be part of the resolution process.
The committee is understood to have reiterated its earlier decision to distribute the proceeds among the financial creditors, jetissoning the DoT as the department it is considered as an operational creditor.
Last week, the DoT filed an application with the National Company Law Tribunal (NCLT) contending that spectrum should not be a part of the resolution plan of R-Com and its sister concern Reliance Telecom.
The DoT had filed an affidavit detailing its objections. The NCLT has kept the matter for hearing on September 8.
R-Com owes more than Rs 49,000 crore to its lenders, including Rs 7,000 crore to Chinese banks, and Rs 25,199 crore in spectrum usage charges and license fee to DoT. The committee of creditors has picked UV Asset Reconstruction and Reliance Jio to buy R-Com’s spectrum, real estate, enterprise, tower and data centre business for around Rs 23,000 crore .