RCom lenders reject resignation of Anil Ambani, four other directors

The Committee of Creditors (CoC) of Reliance Communications (RCom) has rejected the resignations of the company’s directors and asked them to continue in their job until the corporate insolvency resolution process (CIRP) is through.

“It is being duly communicated to the directors of RCOM that their resignations have not been accepted and they are advised to continue to perform their duties and responsibilities as the directors of RCom and provide all cooperation to Resolution Professional (RP) in the corporate insolvency resolution process,” RCom said in an exchange filing on Sunday.

The resignations were conveyed to the CoC in its meeting on November 20 and were unanimously rejected. 

Earlier this month, Anil Ambani, along with Chhaya Virani, Ryna Karani, Manjari Kacker, and Suresh Rangachar, resigned as director. 

Manikantan V, who was chief financial officer and director, also resigned.

RCom is under the CIRP and Resolution Professional Anish Nanavaty is managing its businesses and assets. The National Company Law Tribunal (NCLT) recently extended the CIRP period, which has to be over by January 10 next year. 

For the June-September quarter of FY20, RCom had a pre-tax loss of Rs 2,733 crore and net loss of Rs 30,147 crore after accounting for adjusted gross revenue (AGR) provisions following the Supreme Court’s ruling on statutory dues. 

It reported Rs 305 crore in revenue, down from Rs 866 crore in the first quarter.

The company reported losses of Rs 338 crore in the previous quarter and a profit of Rs 1,295 crore in the second quarter last financial year. 

RCom has received claims of Rs 84,268 crore. It has put on the market all its assets, including a spectrum holding of 122 MHz, estimated to be worth around Rs 14,000 crore; the towers business at Rs 7,000 crore; an optical fibre network of Rs 3,000 crore; and data centres worth Rs 4,000 crore.

In the annual general meeting held last month, the resolution professional said it would be better if a single investor took over the company.