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Ericsson case: RCom gets relief from TDSAT, can go ahead with spectrum sale

The debt-laden firm pointed out that 38 secured lenders of the group have already approved the sale of the said spectrum

Press Trust of India  |  New Delhi 

Rcom

said Wednesday it has got relief from telecom tribunal and can now complete its planned spectrum sale, whose proceeds will be used to make payments to India and minority investors.

RCom, in a regulatory filing to the BSE, said it will receive Rs 9.75 billion from sale of spectrum, and that it will pay Rs 5.5 billion and (Reliance Infratel) minority investors Rs 2.3 billion from the spectrum trading proceeds.

"has been granted relief by the...(TDSAT) vide its interim order dated 1 October 2018, whereby...has stayed the demand of of Rs 29 billion by the Department of Telecommunications," it said.

The Anil Ambani promoted noted it had challenged the "unjustly sought security for the alleged demands" by the with regard to spectrum usage charges.

"After multiple hearings since August 28, 2018 the Hon'ble TDSAT, vide its interim order dated October 1, 2018 has stayed the said demand and directed DoT to expeditiously grant its approval for trading of the spectrum," added.

The debt-laden firm pointed out that 38 secured lenders of the group have already approved the sale of the said spectrum.

"...and the proceeds thereof will be used for making payments to India Private Limited and to Minority Investors, as per settlement terms," it said.

The company, yesterday, said it had learnt that unsecured creditor had filed a contempt petition on October 1, in in relation to the settlement amount of Rs 5.5 billion to be paid by

RCom had also stated that it filed an application on September 28 in the apex court seeking 60 more days for making payment to the Swedish

That matter is slated to be heard on October 4, it pointed out.

"The extension has been sought purely due to the fact that, as approved by 38 secured lenders, and as per RCOM's undertaking, Ericsson is to be paid from the sales proceeds of spectrum being traded by RCom, and such sale could not be completed as yet owing to factors beyond the control of RCOM," RCom has stated in the filing on Tuesday.

The company was, at that time, awaiting the copy of the order passed by

Last year, (RCom) signed a pact with Reliance Jio for sale of wireless spectrum, tower, fibre and assets - the proceeds of which were to be used to pare debt.

From that deal, RCom has thus far announced the completion of the sale of assets worth Rs 30 billion and sale of its worth Rs 20 billion to Mukesh Ambani-backed

First Published: Wed, October 03 2018. 17:25 IST
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