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Reliance Communication announced that the Hon'ble Supreme Court has on 05 April 2018 lifted the stay granted in favor of Ericsson by the
Bombay High Court, in relation to asset sales by RCOM. The Hon'ble SC has directed that secured lenders can proceed with the asset sales in accordance with law.
Accordingly, there is now no bar in immediately completing the asset sales of spectrum, MCNs and real estate, and the same shall be concluded expeditiously.
On the stay granted by NCLT in favor of minority investors holding approx. 4% shareholding in Reliance Infratel, which is limited to tower and fibre assets, the Hon'ble SC has not made any comments on merits, and has instead only directed RCOM and its lenders to follow due procedure, and file an appeal before the NCLAT, instead of directly approaching the Hon'ble SC.
As legally advised, and based on the order of the Hon'ble SC as above, RCOM is confident of securing appropriate relief from the NCLAT to enable sales of tower and fibre assets to also be completed at the earliest. The claim of the minority investors (which is fully disputed by RCOM) can, in any case, be a maximum of approx. Rs. 200 - 300 crore from the sales
proceeds. RCOM intends filing the aforesaid appeal before NCLAT tomorrow, with a request for expeditious disposal of the same.
Based on these developments, RCOM is now confident of achieving overall debt reduction of approx. Rs. 25,000 crore within the next few weeks, from the first phase of the asset monetisation programme.
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