RCom Seeks Another 60 Days for Repayment of Rs 550 Crore to Ericsson Citing Delay in Spectrum Sale

Reliance Communications (RCom), today stated that it requires another 60 days for the repayment of Rs 550 crore to telecom gear maker Ericsson. The Anil Ambani-led company cited the delay in spectrum sale caused the delay in repayment. RCom said that the spectrum sale could not be completed on time due to ‘factors beyond its control.’ In a statement at BSE, RCom said as “Ericsson India Private Limited ( Ericsson’), an unsecured creditor of RCom, is understood to have filed a Contempt Petition on October 1, 2018, in the Hon’ble Supreme Court in relation to the settlement amount of Rs 550 crore to be paid by RCom. This filing is unwarranted.”

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RCom Filed an Application in the Apex Court Seeking Extension of Time

RCom maintained it has already filed an application on September 28 in the apex court seeking extension of time for making payment to the Swedish telecom equipment maker, by 60 days. That matter is slated to be heard on October 4, it pointed out.

“The extension has been sought purely due to the fact that, as approved by 38 secured lenders, and as per RCom’s undertaking, Ericsson is to be paid from the sales proceeds of spectrum being traded by RCom, and such sale could not be completed as yet owing to factors beyond the control of RCom,” it stated, according to PTI.

The Anil Ambani company noted that it filed an application for approval of the said sale with the Department of Telecommunications (DoT) on August 7, 2018.

“However, DoT unjustly sought securitisation of alleged demands (which are wholly disputed) for Spectrum Usage Charges amounting to Rs 2,900 crore. This demand of DoT has been challenged by RCom before the Hon’ble Telecom Disputes Settlement and Appellate Tribunal ( TDSAT’),” said RCom.