RCom stares at insolvency as SC rejects plea for more time on Ericsson dues

Apex court had asked RCom to clear Ericsson dues by Dec 15, while RCom sought two more weeks

Anil Ambani-led Reliance Communications (RCom) could be staring at insolvency as the Supreme Court (SC) on Thursday declined to grant it two weeks extra time to clear the Rs 5.5 billion dues of Ericsson. The deadline for the said repayment ends December 15.

The refusal by the top court to grant more time to RCom revives fears of corporate insolvency proceedings against the company. The Rs 5.5-billion repayment agreement between RCom and Ericsson was reached in the National Company Law Appellate Tribunal (NCLAT).  While asking RCom to clear the dues, the NCLAT had said Ericsson could revive the insolvency petition