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RCom lenders move NCLT to appoint new resolution professional for CoC

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

Press Trust of India  |  Mumbai 

A man walks past a logo of Reliance Communication before the Annual General Meeting in Mumbai. (Photo: Reuters)
A man walks past a logo of Reliance Communication before the Annual General Meeting in Mumbai. (Photo: Reuters)

The lenders to the crippled Communications (RCom) Tuesday moved NCLT to appoint a new resolution professional and form a committee of creditors, the first step to begin the bankruptcy process of the Anil group company that owes close to Rs 50,000 crore to 31 lenders led by

Meanwhile, RCom through the existing resolution professional, sought 13 months exclusion in the insolvency process citing the stays it had on the process by the appellate tribunal and the

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

RCom was in trouble for years forcing it to discontinue operations two years ago. Its effort to stave off bankruptcy by selling spectrum to Jio got scuttled after the long legal and government delays for approvals.

Also, the company has not been successful to meet any of the several publicly made promises to pay back the lenders by monetising and spectrum assets.

Last month Anil 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 last year.

Earlier, from which RCom had borrowed over USD 1 billion, had dragged it to the 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 comprising of directed the existing RP to file a progress report by May 30 when it will hear the matter.

First Published: Tue, May 07 2019. 20:46 IST
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