RCom creditors panel to vote on Rs 23,000-cr resolution plans on 24 February; loans of Chinese lenders to reduce by nearly 65%

RCom's secured debt is estimated to be around Rs 33,000 crore. Lenders submitted claims of around Rs 49,000 crore in August.

Press Trust of India February 18, 2020 17:29:41 IST
RCom creditors panel to vote on Rs 23,000-cr resolution plans on 24 February; loans of Chinese lenders to reduce by nearly 65%
  • UV Asset Reconstruction Company is learnt to have placed a bid of around Rs 14,700 crore while Jio has made an offer of Rs 4,700 crore for tower and fibre assets of Reliance Infratel

  • RCom's secured debt is estimated to be around Rs 33,000 crore and lenders submitted claims of around Rs 49,000 crore in August

  • As per the NCLT order, the CoC had to complete the entire process by 10 January but it sought extension in deadline

New Delhi: The Committee of Creditors of Reliance Communications (RCom) on February 24 will put to a vote asset bids received from UV Asset Reconstruction Company and Reliance Jio from which lenders are expected to recover around Rs 23,000 crore, according to sources privy to the development.

UV Asset Reconstruction Company is learnt to have placed a bid of around Rs 14,700 crore while Reliance Jio has made an offer of Rs 4,700 crore for tower and fibre assets of Reliance Infratel Ltd. There will also be claw back of Rs 4,300 crore of priority payments made to Chinese and Indian creditors.

"With this resolution plan, the 38 lenders of RCom will recover over 70 percent of their outstanding of about Rs 33,000 crore. In the case of Bhushan Steel and Essar Steel, the recovery to lenders was 63 percent and 60 percent, respectively, as per the IBBI website," the source said.

RCom creditors panel to vote on Rs 23000cr resolution plans on 24 February loans of Chinese lenders to reduce by nearly 65

Representational image. Reuters.

"Loans of Chinese lenders to reduce by nearly 65 percent i.e., by Rs 8,000 crore from about Rs 12,000 crore to around Rs 4,000 crore," a banking source aware of the process said.

Jio placed bid for tower and fibre assets of Reliance Infratel Ltd. (RITL) and UVARC for assets of RCom and Reliance Telecom Ltd.

RCom's secured debt is estimated to be around Rs 33,000 crore. Lenders submitted claims of around Rs 49,000 crore in August.

RCom has put all of its assets on sale which include spectrum holding of 122 MHz, tower business, optical fibre network and data centres.

"The bidders have committed to pay 30 percent of the proceeds of around Rs 7,500 crore within 90 days," the source said.

As per the NCLT order, the CoC had to complete the entire process by 10 January but it sought extension in deadline. The Resolution Professional (RP), Deloitte, is expected to file resolution plan with the NCLT Mumbai on 5 March.

RCom in the past had tried to sell assets to various companies, including Reliance Jio, to clear debt but the deals did not crystallise. Reliance Jio cancelled agreement to buy RCom assets, including spectrum, as it did not want to bear the past liabilities of the debt-ridden firm.

Later, the insolvency proceedings against RCom started on a plea filed by Swedish telecom gear maker Ericsson after the company failed to clear its dues.

Updated Date:

also read

Patanjali renews interest in Ruchi Soya takeover as Adani Wilmar raises asset concerns of edible oil firm
Business

Patanjali renews interest in Ruchi Soya takeover as Adani Wilmar raises asset concerns of edible oil firm

Patanjali Ayurved has approached the NCLT challenging the decision by Ruchi Soya's lenders to approve Adani Wilmar's Rs 6,000 crore takeover bid.

NCLAT to decide over insolvency plea of debt-ridden RCom; tribunal to consider DoT's reply on 30 April
Business

NCLAT to decide over insolvency plea of debt-ridden RCom; tribunal to consider DoT's reply on 30 April

Earlier on 4 February, the tribunal had said that until further orders of the NCLAT or the Supreme Court, no one can sell, alienate, or create third-party rights over RCom's assets.

Anil Ambani's RCom's bankruptcy begins as NCLT allows firm to exclude 357 days spent in litigation; next hearing on 30 May
Business

Anil Ambani's RCom's bankruptcy begins as NCLT allows firm to exclude 357 days spent in litigation; next hearing on 30 May

At the last hearing, RCom had sought 357 days (from 30 May, 2018 to 30 April, 2019) exclusion in the insolvency process citing the stays it had on the process by the NCLAT and the Supreme Court.