RCom to complete Rs 25,000-crore sale by end August
06 Aug 2018
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Reliance Communications expects to complete the sale of assets worth Rs 25,000 crore by end August.
It has agreed to pay Rs550 crore towards a settlement to telecom gearmaker Ericsson by September-end.
Reliance Communications in a regulatory filing said that it has "agreed to pay a settlement amount of Rs550 crore to Ericsson on or before 30 September, 2018", following the
Supreme Court approving a settlement between RCom and Ericsson India Pvt Ltd over a payment dispute on 3 August.
It asked the Anil Ambani-led firm to pay Rs550 crore to the Indian arm Ericsson by 30 September.
In 2014 Ericsson India Pvt Ltd had signed a seven-year deal to operate and manage the Anil Ambani telecom company's nationwide telecom network.
Alleging non payment of dues dues of over Rs1,500 crore, it challenged debt-ridden Reliance Communications before National Company Law Appellate Tribunal (NCLAT).
A Supreme Court bench examined the 30 May interim order of the NCLAT and noted that Ericsson India Pvt Ltd was willing to settle its debt of over Rs1,500 crore for a sum of Rs 550 crore which was to be paid by RCom within 120 days.
The apex court on 3 August allowed RCom to sell assets covering spectrum, fibre, telecom towers, MCNs and certain real estate assets, for approximately Rs25,000 crore.
"The company expects to complete all these transactions by 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 (See: Mukesh Ambani acquires RCom’s wireless assets to bail out brother Anil).
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