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Andrew Bonwick
Vice President of Product Development at Relm Insurance
Madhav Sheth
CEO of Ai+ Smartphone
Stephen Rose
CEO Render Networks
In a new turn of events, RCom along with its subsidiaries Reliance Infratel and Reliance Telecom has gone ahead to the appellate tribunal to halt the order which was passed by the NCLT, declaring that RCom should now proceed along the laws of insolvency and bankruptcy post admitting Ericsson’s petition. This move has been done as the telco is now in talks with Ericsson to the settle the matter outside of court for the dues which they owed to the Swedish manufacturer amounting to more than Rs 1,000 crore. RCom approached National Company Law Appellate Tribunal asking the bench to set aside the order which NCLT passed. Two anonymous lawyers who did not want to be identified stated that they had the grounds to halt the insolvency order, given that Ericsson was an operational creditor.
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Further, the person added, “There is a dispute, so under Section 9, insolvency proceedings cannot begin.” When ET asked questions about the same, there were no answers from RCom or Ericsson.
Last time ET reported that RCom was trying to negotiate a price between Rs 700-800 crore after Ericsson rejected their first offer of Rs 400-500 crore. The Indian telecom operator is directly in talks with the headquarter of Ericsson in an attempt to solve the matter outside the court.
The market was fast in reflecting the sentiment after this news broke out as RCom shares fell in price 12.7% to Rs 13.40 during the closing time in BSE on Monday. This was most likely due to the speculation that discussions with Ericsson would not come to fruition for RCom. As per a report by ET, Ericsson had asked State Bank of India, one of RCom’s lenders to issue an undertaking saying that if RCom defaults on the payment, then the bank will pay up the dues.
