RCom moves tribunal against insolvency order

New Delhi, May 22

Reliance Communications has moved the National Company Law Appellate Tribunal (NCLAT) challenging its order allowing a plea for its insolvency filed by Swedish telecom equipment major Ericsson.

Anil Ambani-run RCom’s plea is expected to be heard by the appellate tribunal in the coming week. RCom informed stock exchanges that it has approached NCLAT along with its two subsidiaries --- Reliance Telecom and Reliance Infratel--- to stay the order passed by the Mumbai NCLAT Bench on May 15.

“The Directors of RCom and two of its subsidiaries on Tuesday filed appeals before the NCLAT challenging and praying to stay the order of NCLT Mumbai, whereby Ericsson applications had been allowed to be admitted for debt resolution under the NCLT IBC (Insolvency and Bankruptcy Code) process,” said a RCom spokesperson.

NCLT had admitted an insolvency petition filed by Ericsson against RCon and two of its subsidiaries, seeking to recover Rs 1,150 crore. Ericsson had signed a seven-year deal in 2014 to operate and manage RCom’s nationwide telecom network.

Last September, the Swedish company had approached NCALT to recover its amount and filed insolvency plea. TNS