This is being done in accordance with Section 30(6) of the Insolvency and Bankruptcy Code, 2016. (Reliance Communications Limited is under corporate insolvency resolution process pursuant to the provisions of the Insolvency and Bankruptcy Code, 2016.
With effect from June 28, 2019, its affairs, business and assets are being managed by, and the powers of the board of directors are vested in, the Resolution Professional, Anish Niranjan Nanavaty, appointed by National Company Law Tribunal, Mumbai Bench.
The Committee of Creditors (COC) has approved the Reliance Communications (RCom ) resolution plan under which the lenders will receive 70 per cent or Rs 23,000 crore of their total outstanding dues of Rs 33,000 crore.
This is the highest-ever recovery of dues by financial creditors in the telecom sector which has seen the exit or shut down of 11 out of 12 telcos since 2012.
The Resolution plans of Reliance Communication (RCom), Reliance Telecom (RTL), and Reliance Infratel (RITL) have been approved with an absolute majority (100 per cent) by the lenders at the COC meeting, as against the mandatory requirement of 66 per cent.
The 38 lenders of RCOM will recover over 70 per cent or Rs 23,000 crore of their outstanding of Rs 33,000 crore of secured debt.
Jio and UVARC were the highest bidders for RCOM assets at the COC meeting held on 13th January 2019.
Jio had bid Rs 4,700 crore for the tower and fibre assets of Reliance Infratel Limited (RITL). The UVARC had bid Rs 14,000 crore for spectrum, real estate assets as well as the enterprise and datacenter businesses, held in Reliance Communications Ltd (RCom) and Reliance Telecom Ltd. (RTL).
In addition, the lenders will clawback the priority payments of Rs 4,300 crore made to Chinese lenders for Rs 1,300 crore and Indian lenders of Rs 3,000 crore.
The bidders have committed to pay 30% of the proceeds of Rs 7,500 crore within 90 days. The loans of Chinese lenders will reduce by nearly 65 per cent by Rs 8,000 crore from Rs 12,000 crore to Rs 4,000 crore.
This is the highest-ever recovery of dues by financial creditors in the Telecom sector which has seen the exit or shut down of 11 out of 12 telcos since 2012.