As per a regulatory filing, the National Company Law Tribunal (NCLT) Mumbai has approved the sale of some of the real estate assets of Reliance Communications. The filing attached an order of the NCLT’s Mumbai bench in the matter of application filed by the resolution professional of Reliance Communications, seeking approval for undertaking the sale of certain unencumbered assets of the company.
The order clarifies that the applicant can sell assets of the corporate debtor under Regulation 29 of the Corporate Insolvency Resolution Process (CIRP) Regulations after submission of the resolution plan for approval by NCLT. The order said that the sale proceeds would be treated as unencumbered assets of the corporate debtor and be distributed during the implementation of the approved resolution plan or in liquidation, as the case may be.
The assets identified for sale include Reliance Communications’ Chennai Haddow Office, comprising land and building; land parcel in Ambattur in Chennai spread over an area of about 3.44 acres; 871.1 square metres of land parcel in Pune; Bhubaneswar-based office space, investment in shares of Campion Properties and investment in shares of Reliance Realty.
Further, NCLT Mumbai has allowed Reliance Communications to substitute its resolution applicant under the resolution plan submitted by the telco. The operator had changed its resolution applicant to UV Stressed Asset Management Private Limited (UVSAMPL) from the original UV Asset Reconstruction Company Limited (UVARCL) as the latter did not meet some guidelines issued by the Reserve Bank of India. The company had filed an application regarding the same with the NCLT.
In a regulatory filing, Reliance Communications informed that the NCLT has orally pronounced its order through which it has allowed the said application. As per the oral pronouncement by the NCLT on December 12, 2023, Reliance Communications has been allowed the substitution of the resolution applicant from UVARCL with UVSAMPL under the resolution plan.
In the regulatory filing, the company said that the written order is awaited and will be separately shared with the stock exchanges, upon it being made available by the NCLT.
