UVARC, Jio emerge highest bidders for RCom assets

UV Asset Reconstruction Company (UVARC) and Reliance Jio have emerged as highest bidders in asset sale process of debt-ridden Reliance Communications from which lenders expect to recover Rs 25,000 crore, according to banking sources.

Reliance Jio has placed Rs 4,700-crore bids for mobile tower and fibre assets of Reliance Infratel Ltd (RITL), a subsidiary of RCom.

UVARC has placed bids of around Rs 16,000 crore for spectrum, real estate assets as well as the enterprise and data centre businesses held in RCom and Reliance Telecom Ltd (RTL).

"Jio and UVARC have emerged as the highest bidders at Rs 25,000 crore for RCom assets at committee of creditors (COC) meeting held on January 13, 2020," a source closely involved in the development told.

Bharti Airtel and Varde Capital were also in the fray for RCom assets.

"In addition, the lenders will clawback the priority payments of around Rs 4,300 crore made to Chinese lenders (Rs 1,300 crore), Indian lenders (Rs 3,000 crore). Lenders will start recovering the monetisation proceeds starting March 2020," the source said.

RCom's secured debt is estimated to be around Rs 33,000 crore. Lenders have submitted claims of around Rs 49,000 crore in August.

With this, the 38 secured lenders of RCom would recover 75 per cent of the total outstanding of around Rs 33,000 crore.

This is the highest-ever recovery of dues by financial creditors in the telecom sector that has seen the exit or shutdown of 9 out of 12 telecom companies since 2012, the source said.

The bidders have committed to pay 30 per cent of the proceeds of around Rs 7,500 crore within 90 days, the source said.

Committee of Creditors members will have to now obtain their respective board approvals so that they can put in final vote to approve the resolution plans on January 31 ahead of the NCLT filing due by February 3.