In a breather for Reliance Communications (RCom), the Anil Ambani-owned company has got approval from the National Company Law Appellate Tribunal (NCLAT) to proceed with the sale of its tower and fibre business.
RCom can now execute its full asset monetisation programme of around Rs 250 billion, as the Supreme Court has already allowed the sale of spectrum and other assets, including real estate. The company can sell most of its assets to Reliance Jio to pare its Rs 450-billion debt.
Giving partial relief to RCom on Thursday, the Supreme Court had lifted the stay on sale of spectrum, real estate and media convergence nodes. Regarding tower and fibre assets, which come under Reliance Infratel, the court had asked the firm to move the NCLAT.
“By an interim order passed today, the NCLAT has vacated the remaining stay, and allowed the execution of sale deeds and deposit of the proceeds with SBI in an escrow account. Based on these orders, RCom can now proceed with the completion of its entire asset monetisation plan, covering spectrum, towers, fibre, MCNs and real estate,” an RCom spokesperson said.
The National Company Law Tribunal (NCLT) had prevented RCom from selling any asset without its permission as Swedish telecom network maker Ericsson approached the tribunal seeking payment of unpaid dues to the tune of Rs 11.55 billion by RCom.
The company said it was very confident of achieving overall debt reduction of about Rs 250 billion within the next few weeks from its asset monetisation programme. The company said the distribution of proceeds from the sale of the tower and fibre business would be subject to the final decision of the NCLAT on April 18.
“Based on legal advise, RCom believes the claim of the minority investors in the tower and fiber proceeds, which is fully disputed by RCom, can at best be Rs 200-300 crore (Rs 2-3 million),” the spokesperson added.