Blow to RCom as lifeline deal with Aircel collapses

Anil Ambani company to sell spectrum to ease debt burden

A merger between Reliance Communications (RCom) and Aircel, owned by Maxis of Malaysia, has collapsed on account of delays in getting approvals from courts and other authorities like the department of telecom.

RCom and Aircel had signed binding agreements in September last year for the merger of the former’s mobile business with the latter.

But with the Supreme Court still hearing a 2005 case on the acquisition of Aircel by Maxis, the Department of Telecom has refused to give its permission for the merger.

Besides, with creditors including Ericsson and China Development Bank objecting to the merger at the National