The committee of creditors (CoC) tasked with finding buyers for the Anil Ambani-promoted Reliance Communications and its two arms decided at a meeting on Thursday to seek an extension of 24 days from the National Company Law Tribunal (NCLT) to complete the process.
Banking sources involved in the process of sale of the companies — Reliance Communications, Reliance Telecom Infrastructure, and Reliance Infratel, which houses the tower and fibre assets — say they are expecting the extension to be granted soon.
The deadline for completion of the sale ends on January 10. However, though various offers have come for the companies, the CoC has not come to a final decision.
Reliance jio has made an upfront offer to buy Reliance Infratel for Rs 3,600 crore and is ready to pay cash upfront in 60 days. It is not interested in the two other companies that have the spectrum and real estate assets.
The other bidders include Bharti Airtel, Värde Partners and UV Asset Reconstruction Company (UVARCL). However, it is believed none of the other bidders are ready to give a reasonable upfront payment to buy the company.
The creditors have to recover around Rs 33,000 crore of secured debt through the Insolvency and Bankruptcy Code process. Yet the offers would force them to go for a large hair cut. Bankers say it might be better if the company is out under liquidation and assets sold in parts to get better value.