Reliance Communications resolution professional are looking for buyers for non-core assets of the telecom company. This decision comes in the backdrop of having received no approval after waiting for almost two years.
The winning bidder for RCom, UV Asset Reconstruction Company, and lenders have given in-principle consent to the RP to explore the sale of its unencumbered assets. The resolution professional, Anish Nanavaty backed by Deloitte, will obtain a fresh valuation and hold an auction of the assets, similar to the process followed under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act. The resolution professional has invited expressions of interest by April 17, 2022 for six assets: land in Pune (871.1 sq metres) and Chennai (3.44 acres); offices on Chennai’s Haddows Road and Bhubaneswar; and shares of Campion Properties Limited and Reliance Realty.
Meanwhile, since the corporate insolvency and resolution process has crossed the maximum of 330 days that is permitted under the Insolvency and Bankruptcy Code, lenders are apprehensive that the tribunal will not permit them to restart the resolution process. As a result, the resolution professionals are resorting to the piecemeal sale of assets.
Earlier, in March 2020, lenders had unanimously voted for the UV ARC’s resolution plan for two bankrupt companies: RCom and Reliance Telecom. To this end, they also approved unanimously a resolution plan for Reliance Infratel by Reliance Digital Platform and Project Services, a Reliance Industries group company. Insolvency proceedings against the three Anil Ambani group companies started in May 2018, but the process was halted for a year for lenders to work on an out-of-court settlement, which they eventually could not reach.
