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RCom to challenge Ericsson's insolvency petition

The Swedish telecoms equipment maker is seeking Rs 1,155 cr as dues

Press Trust of India  |  New Delhi 

Reliance Communications clears barrier in Sistema merger

today said it will challenge equipment maker Ericsson's petition against it under the insolvency and bankruptcy code for recovery of about Rs 1,155 crore.

"We wish to inform you that India Private Limited (Ericsson), an unsecured operational creditor, has filed petition under IBC provisions against the company in... National Company Law Tribunal, Mumbai Bench (NCLT)... For recovery of an amount of Rs 491.41 crore," RCom said in a BSE filing.

has also filed similar petitions against RCom subsidiaries, Reliance Infratel and Reliance Telecom, for recovery of Rs 534.75 crore and Rs 129.34 crore, respectively, the filing added.

"Today, after hearing the parties, the NCLT has adjourned the matter to 26th September, 2017. The company intends to challenge the said petitions," RCom said.

The debt-ridden telecom operator has been given time till December 31 by the lenders to service its debt obligation. It has been reeling under a financial crisis following cut-throat competition over tariff.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Wed, September 13 2017. 22:48 IST