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Anil Ambani's RCom's bankruptcy proceedings begin; next hearing on May 30

RCom was in trouble for years forcing it to discontinue operations two years ago

Press Trust of India  |  Mumbai 

RCom, reliance communication
Representative Image

Law Tribunal Thursday allowed Communications (RCom) to exclude the 357 days spent in litigation and admitted it for

With this, RCom, which owes over Rs 50,000 crore to banks, has become the first group company to be officially declared bankrupt after the NCLT Thursday superseded its board and appointed a new resolution professional to run it and also allow the SBI-led consortium of 31 banks to form a committee of creditors.

At the last hearing, Rcom, through the existing resolution professional, had sought 357 days (from May 30, 2018 to April 30, 2019) exclusion in the process citing the stays it had on the process by the appellate tribunal and the

The RP sought the exclusion from May 30, 2018 to April 30, 2019 as the initial proceedings was stayed by the (NCLAT) and later by the apex court.

A bench comprising said the matter should proceed in a manner of law and in view of the guidelines, the tribunal grants the exclusion of time for Infratel and Telecom along with

was in trouble for years forcing it to discontinue operations two years ago. Its effort to stave off by selling spectrum to got scuttled after legal and government delays for approvals. But it could not meet any of the several publicly made promises to pay back the lenders by monetising and spectrum assets.

Last month managed to avoid a contempt of the and a possible jail term after a last-minute bailout by elder brother who extended him over Rs 480 crore to pay back vendor Ericsson, which was the first operational creditor to drag it to NCLT.

took the company to NCLT in September 2017 for non-payment of over Rs 1,500 crore dues. Finally they agreed for a Rs 550 crore settlement.

Earlier, from which had borrowed over USD 1 billion, had dragged it to NCLT which was settled after giving a portion of its in the nearby

On May 3, SBI held a meeting to shortlist an RP after issuing a request for proposal in April for a new RP. RCom's committee of creditors will have to approve a new RP with a 66 percent vote after the NCLT starts the insolvency process.

The Mumbai bench on May 7, also had directed the existing RP to file a progress report by May 30 when it will hear the matter.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Thu, May 09 2019. 15:42 IST