The Department of Telecommunications (DoT) has raised objection against the resolution plan of Reliance Communications (RCOM), Reliance Telecom Limited (RTL) and Reliance Infratel Limited (RITL) in the National Company Law Tribunal (NCLT).
If the resolution plans of the said companies get into action, then DoT as an operational creditor will not get any proceeds out of such a resolution.
The NCLT has adjourned the hearing on this matter till August 21, 2020 and has directed DoT to file written submissions by then.
RCOM’s committee of creditors has approved a resolution plan, which involves lenders receiving Rs 230 billion. Further, in the auction of RCOM’s assets, Reliance Jio and UVARC had emerged the highest bidders. While Jio had bid Rs 47 billion for the tower and fibre assets of RITL, the UVARC had bid Rs 140 billion for spectrum, real estate assets and the enterprise and data centre businesses of RCOM and RTL.
Moreover, as per the terms of the resolution plan, the Chinese lenders to RCOM will receive Rs 55 billion.
As of yet, RCOM’s lenders have given their approval to resolution plan. However, the NCLT is yet to give its nod.