Reliance Communications (RCom) pared morning gains to fall over 4% after BSE sought clarification from the company on a news article titled "NCLT rejects RCom's plea for stay on insolvency order".Shares of the company had rallied 25% to Rs 20.65 per share on the BSE in early morning trade, surging 108% from its Wednesday’s intra-day low of Rs 9.95 after a media report suggested that the Anil Ambani-led telecom services company and Ericsson inform National Company Law Tribunal (NCLT) in Mumbai that they are in settlement talks.
“The Company is on the captioned subject and wish to inform you that the Company cannot comment on changes in volume and price in the stock markets. Appropriate disclosures will be made in accordance with applicable regulations, as and when any disclosable event occurs,” RCom said on clarification with reference to news appeared on ET NOW dated May 17, 2018, quoting " RCom, Ericsson inform NCLT that they are in settlement talks- Rcom, Ericsson request NCLT to keep insolvency order in abeyance"
“Reliance Communications and two of its subsidiaries Reliance Telecom and Reliance Infratel, await the detailed orders of the Hon’ble National Company Law Tribunal (NCLT), Mumbai, allowing the Ericsson application for admitting the companies to debt resolution under IBC,” the company had said on clarification on news appeared quoting ‘NCLT admits Ericsson's bankruptcy plea against RCom, subsidiaries.
The Companies will decide the next course of action after studying the orders, it added.
Meanwhile, RCom in BSE filing said the meeting of the board of directors scheduled to be held on Saturday, the 19th May 2018 is now rescheduled to Wednesday, 30th May 2018 inter alia, to consider and approve the audited financial results of the company for the quarter and year ended March 31, 2018.
“We confirm that RCom and Ericsson are at an advanced stage of discussions to expeditiously resolve commercial issues. This will enable Reliance Communications to exit the NCLT process. RCom is confident to expeditiously proceed with its monetisation plan with Reliance Jio and overall Resolution Plan with the lenders, keeping in mind the interests of all stakeholders," RCom said.At 1:30 pm; RCom was trading 4% lower at Rs 15.85. It hit a high and low of Rs 20.65 and Rs 14.10 during the day.