Little relief in sight for RCom lenders 17 months after insolvency action

Insolvency against bankrupt telecom company and two arms restarted last May after NCLAT lifted stay on proceedings; Rs 91,000 crore worth claims have been admitted against the firm.

It was billed as the largest ever debt reduction effort by any company in India as Reliance Communications (RCom) chairman Anil Ambani promised in June 2017 to reduce the company's Rs 45,000 crore debt by 60 per cent within seven months.

But three years following Ambani's announcement and seventeen months after the recommencement of insolvency proceedings against RCom the situation remains the same. Banks have not received a penny and the wait could get longer as tribunals have to decide first on whether spectrum of an insolvent company can be sold under the IBC process or not. 

Insolvency against RCom