Industrialist Anil Ambani is now planning to use payment from his brother, Mukesh Ambani’s company Reliance Jio and sale of real estate assets to pay off, which he owes to Ericsson following a court ruling this week, claims a source familiar with the matter.
On Wednesday, the Supreme Court has ordered Mr. Ambani’s Reliance Communications and two of its directors to pay off Sweden’s Ericsson $63.30 million (Rs. 450 crore) within four weeks or have to face three-months of jail term for contempt of court.
RCom owes s. 571 crore in-total to Ericsson, including a one-time settlement of Rs. 550 crores and Rs. 21 crores and interest payments.
Since Reliance Communications is in bankruptcy court for debt resolution, it requires the approval of lenders for any such transaction.
The company said that “RCom is confident of raising the balance…well within the time of four weeks allowed by the Honourable Supreme Court.”
A source that has spoken on the condition of anonymity, said that RCom is looking forward to sell its real estate assets in Kolkata and Chennai to raise the remaining funds.
It is expected to urge Reliance Jio, which is controlled by Mukesh Ambani, who is Asia’s richest man, to speed up payments owned for fibre assets obtained from RCom, said the sources.
In August, RCom said that it had struck a deal to sell Reliance Jio its ancillary telecom and optical fibre assets for only Rs. 5000 crore.
The source claims that “we have received only Rs. 780 crore from Jio. We can ask Jio to pay up sooner.”
Supreme Court’s order comes at a time when Ambani’s Reliance Group was facing falling valuations of group companies and goodwill loss as well, sparking heavy selling of pledged shares.
Earlier this week, Reliance Group said that the company has the plan to sell parts of its power assets as well. On Thursday, the company would also sell its 42% stake to pay off its debtors in Reliance Nippon Life Insurance.