RCom Expecting Rs 25,000 Crore Assets Sale by August End

Reliance Communications (RCom), the Anil Ambani-led company is now expecting to complete the sale of its business assets worth Rs 25,000 crore by the end of this month. At the same time, the debt-ridden telco has agreed to pay Rs 550 crore towards the settlement to telecom gear-maker Ericsson by the end of September. RCom, in a regulatory filing, said that it has “agreed to pay a settlement amount of Rs 550 crore to Ericsson on or before September 30, 2018”. The Supreme Court of India on August 3 approved the settlement arrived at between RCom and Ericsson India over a payment dispute and asked the Anil Ambani-led firm to pay Rs 550 crore to the Indian arm of Swedish firm by September 30.

Reliance

Ericsson India, which had signed a seven-year deal in 2014 to operate and manage RCom’s nationwide telecom network, had alleged that it had not been paid the dues of over Rs 1,500 crore and challenged the debt-ridden firm before National Company Law Appellate Tribunal (NCLAT).

A Supreme Court bench perused the May 30 interim order of the NCLAT and noted that Ericsson India was willing to settle its debt of over Rs 1,500 crore for a sum of Rs 550 crore which was to be paid by RCom within 120 days.

The apex court on August 3 allowed RCom to sell assets covering spectrum, fibre, telecom towers, MCNs and certain real estate assets, for an aggregate value of approximately Rs 25,000 crore.

“The company expects to complete all these transactions by the end the month, August 2018, thereby accelerating its overall debt resolution plan,” RCom said.

RCom has entered into an agreement with Mukesh Ambani-led Reliance Jio and asset management firm Brookfield to sell telecom business assets for Rs 18,000 crore. The deal, which was announced way back in December 2017, faced many hurdles until now. But RCom is now allowed to sell its assets to Jio, after the Supreme Court permission on August 3.

Reported By

Leave a Reply

49 Comments on "RCom Expecting Rs 25,000 Crore Assets Sale by August End"

 

Sort by:   newest | oldest
Kirit Patel (Ahmedabad)
August 7, 2018 11:35 pm 11:35 PM

See the attached image for details of available spectrum 1800 MHz after surrender spectrum by Aircel.

Please note that TRAI will put Aircel spectrum for auction in next auction

SnipImage.JPG
Nikhil Mumbai-Pune
August 8, 2018 12:19 pm 12:19 PM

Are you sure?

Kirit Patel (Ahmedabad)
August 8, 2018 2:22 pm 2:22 PM

Yes you can see on TRAI website

Nikhil Mumbai-Pune
August 8, 2018 6:19 pm 6:19 PM

Apart from this lots of spectrum available at Aircel in band 3. Trai site might have not updated.

Kirit Patel (Ahmedabad)
August 8, 2018 9:00 pm 9:00 PM

Nikhil only Aircel surendered in six circle spectrum will be available in next auction

Nikhil Mumbai-Pune
August 8, 2018 10:52 pm 10:52 PM

Ok. What about other spectrum?

Chetan Malhotra
August 7, 2018 8:01 pm 8:01 PM

Guys just for everybodirs info… Rcom has to complete all asset sale on or before 27th August as post that insolvency procedure will start again.. so we can expect rcom Jio deal to be completed before 27th….

Nikhil Mumbai-Pune
August 7, 2018 9:31 pm 9:31 PM

+1

Chetan Malhotra
August 7, 2018 12:54 pm 12:54 PM

Guys, not sure if anybody has any info on my question which I am going to ask?? I have a vacant tower which was housing mts and Tata Docomo networj but after both closure, the site is vacant and radio systems and other equipment is removed long ago but site is lying like steel structure with shelter and Genset for 6 months now… Any idea what is the tower company upto ????.. the site either belongs to atc or tower vision…

Kirit Patel (Ahmedabad)
August 7, 2018 4:20 pm 4:20 PM

If tower is vacant, tower company invite to all company for tenancy, at my native place in Gujarat, ATC tower was empty near my home after Tata removed antenna almost 2 month , Jio has installed antenna within month and subsequently airtel installed after two month.

Chetan Malhotra
August 7, 2018 5:05 pm 5:05 PM

@kirit, the challenge is another tower just in next building nearby houses Airtel, Jio, Vodafone, and idea on same site and there is no possibility that Jio or Airtel will use this vacant site to install their radio. My view is also that this tower company has signed lease with owner for long life and waiting for some operator to take it if possible and if not taken then keep it like that till end of lease life …

Siddu
August 7, 2018 3:19 pm 3:19 PM

@Chetan I have seen many towers where radios and antennas removed in TN rural areas.. Those towers belong to GTL which where used for Aircel network…!! GTL held intial talks with other private operators but they din’t succeed..!!

Nikhil Mumbai-Pune
August 7, 2018 3:32 pm 3:32 PM

What will happen to Aircel spectrum?

Siddu
August 7, 2018 7:19 pm 7:19 PM

Aircel is not in a situation to pay the dues, dot may get back the spectrum and auction it.. Recently SC refused a plea by the DOT to stay a TDSAT order ordering the cancellation of bank guarantees worth Rs 450 cr against the company.

Chetan Malhotra
August 7, 2018 7:59 pm 7:59 PM

Actually siddu, DOT is playing wait and watch game. They want Aircel to drift towards liquidation of assets and later somebody buys Aircel band 1 spectrum as it will be in loss by taking back the spectrum… That is the reason I believe dot will not cancel rcom spectrum too which is just threatening and taking rcom to TDSAT court…

Siddu
August 8, 2018 12:31 am 12:31 AM

+1

Nikhil Mumbai-Pune
August 7, 2018 7:59 pm 7:59 PM

Will it happen before next auction?

wpDiscuz