RCom, RJio terminate pacts for sale of assets

Reliance Communications (RCom) and Reliance Jio Infocomm (RJio) on Monday announced termination of asset sale agreements with mutual consent.

RCom had earlier signed agreements to sell spectrum, fibre assets and telecom towers to RJio.

"The agreements, dated 28th December 2017 and 11th August 2018, entered into between RCom, RTL, RITL (RCom group) and RJio for the sale of certain specified telecom assets have been terminated today (Monday) by mutual agreement," an RCom statement said.

The company mentioned "non-receipt of consents/objections from RCom's over 40 foreign and Indian lenders in relation to the proposed transactions despite over 45 meetings and the passage of over 15 months" as one of the reasons for cancelling the deal.

It also attributed the decision to the non-receipt of requisite permissions and approvals from the Department of Telecommunications (DoT).

The National Company Law Appellate Tribunal's (NCLAT) February 4 order also restrained the sale, transfer or alienation of any movable or immovable property of RCom, Reliance Telecom (RTL) and Reliance Telecom Infrastructure (RITL).

"The statements of the lenders, as recorded in the order, dated 15th March 2019, of the NCLAT, say it is not possible for them to sell the specified assets, and therefore, the NCLT process for debt resolution should be reinstated," the RCom statement said.

--IANS

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