Anil Ambani’s RCom seeks 60-days extension to repay 550 Crores to Ericsson

Anil Ambani’s RCom seeks 60-days extension to repay 550 Crores to Ericsson

Yesterday, RCom (Reliance Communications) said that the company has asked for another 60-days time for repayment of Rs. 550 crores to its creditor, Ericsson. The reason behind the urge for a time extension is RCom spectrum sale was not completed as the factors were beyond control. Ericsson, the Swedish Telecom major owes Rs. 550 crores from Anil Ambani’s Reliance Communications.

RCom clarifies on media reports and said that in a stock exchange filing the company has submitted an application for approval of spectrum sale on August 7, 2018, with the DoT (Department of Telecommunications).

RCom continued, “Ericsson India Private Limited (‘Ericsson’), an unsecured creditor of RCom, is understood to have filed a contempt petition on October 1, 2018, in the Supreme Court in relation to the settlement amount of Rs. 550 crore to be paid by RCom. This filing is unwarranted.”

RCom reports that it had already filed an application to the Supreme Court on September 28 asked for 60-days extension time for clearing payments to Ericsson and the matter is scheduled to be heard on October 4.

The filing stated, “The extension has been sought purely due to the fact that, as approved by 38 secured lenders, and as per RCom’s undertaking, Ericsson is to be paid from the sales proceeds of spectrum being traded by RCom, and such sale could not be completed as yet owing to factors beyond the control of RCom.”

“However, DoT unjustly sought securitization of alleged demands (which are wholly disputed) for Spectrum Usage Charges amounting to Rs. 2,900 crore. This demand of DoT has been challenged by RCom before the Telecom Disputes Settlement and Appellate Tribunal (TDSAT),” it added.

As per the statement of RCom, several hearings have already taken place over this matter since 28th August 2018 and Ericsson declares an interim relief on October 1.

“The copy of the order passed by TDSAT on October 1, 2018, is, however, still awaited and expected shortly,” it stated.

The statement further added, “RCom, as duty bound, shall duly abide by such directions and orders as may be passed by the Supreme Court upon the matter being heard on October 4, 2018.”

 

 

by Chandrani Sarkar on October 3, 2018

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