With debts over 40,000 crore, Reliance Communication (RCom) headed by Anil Ambani, according to a communique released by the company, is going to opt for insolvency proceedings through National Company Law Tribunal (NCLT). NCLT is the court that deals with bankruptcy cases to overcome debts.
The company through its official statement said, “RCom board of directors decides upon implementation of debt resolution plans through NCLT framework. The Board of Directors of RCom today reviewed the progress of the company’s debt resolution plans since the invocation of SDR on 2nd June 2017. The Board noted that despite the passage of over 18 months, lenders have received zero proceeds from the proposed asset monetisation plans, and the overall debt resolution process is yet to make any headway.”
The statement further read, “Accordingly, the Board decided that the company will seek fast track resolution through NCLT, Mumbai. The Board believes this course of action will be in the best interests of all stakeholders, ensuring comprehensive debt resolution in a final, transparent and time bound manner within the prescribed 270 days.”
However in 2018, Ambani had declared that RCom would be completely withdrawing from telecom business to focus on real estate in future.
Below is the official statement by Reliance Communication: