RCom creditors approve Rs 23,000 cr asset sale plan to highest bidders Jio, UV Asset Reconstruction Company: Report

New Delhi: Reliance Communications’ Committee of Creditors is believed to have approved insolvency resolution plan that will fetch lenders Rs 23,000 crore by selling its assets to Reliance Jio and UVARCL.

Banking Sources say almost all lenders vote in favour of resolution plans for Rel Comm, Rel Infratel & Rel Telecom

Alert: CNBC-TV18 had reported earlier that Rel Jio had been declared H1 for Rel Infratel, UVARCL for RCom & Rel Telecom@_ritusingh pic.twitter.com/DRAcwfp8Eb

— CNBC-TV18 (@CNBCTV18Live) March 4, 2020

Under the plan, 38 lenders of RCom can recover over 70 percent of their outstanding of Rs 33,000 crore secured debt, an industry source aware of the development told PTI. “The committee of creditors (COC) has approved the resolution plans of RCOM and its subsidiaries RTL and RITL with an absolute majority of 100 per cent by the lenders at the COC meeting, as against the mandatory requirement of 66 percent,” the source said. [caption id=“attachment_4473553” align=“alignleft” width=“380”]  Representational image. Reuters.[/caption] Lenders submitted claims of around Rs 49,000 crore in August of which Rs 33,000 crore estimated to be secured debt. Reliance Jio and UV Asset Reconstruction Company Limited were the highest bidders for RCOM assets at the CoC meeting held on 13 January, 2019. Jio had placed a bid of around Rs 4,700 crore for the tower and fiber assets of Reliance Infratel Ltd (RITL), while UVARCL has made an offer of Rs 14,000 crore for spectrum, real estate assets, enterprise and data center businesses, held by RCom and Reliance Telecom Ltd. In addition, the creditors will clawback the priority payments of Rs 4,300 crore made to Chinese (Rs 1,300 crore) and Indian lenders (Rs 3,000 crore).

“Loans of Chinese lenders will reduce by nearly 65 percent to around Rs 4,000 crore from around Rs 12,000 crore. This is the highest-ever recovery of dues by financial creditors in the telecom sector, which has seen the exit or shut down of 11 out of 12 telcos since 2012,” the source claimed.

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According to the Insolvency and Bankruptcy Board of India, the recovery to lenders in the case of Bhushan Steel and Essar Steel were 63 percent and 60 percent, respectively. “The bidders have committed to pay 30 per cent of the proceeds of around Rs 7,500 crore within 90 days,” the source said. The resolution professional has to submit the plan before the National Company Law Tribunal (NCLT) on Thursday. (Disclaimer: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd which publishes Firstpost)