Anil Ambani- owned Reliance Communication has decided to approach the National Company Law Tribunal (NCLT, Mumbai) to seek debt resolution under insolvency law.
"The board noted that, despite the passage of over 18 months, lenders have received zero proceeds from the proposed asset-monetization plans, and the overall debt-resolution process is yet to make any headway," Rcom said in a statement.
"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," the statement added.
RCom said 100 percent approval of all 40 lenders had been "impossible to achieve" on any matter despite 45 meetings in over 12 months and recurring legal challenges by the department of telecom (DoT) for spectrum monetization" and the continuing litigation by other parties support the decision to opt for insolvency.
"Resolution through NCLT is in the best interests of all stakeholders, ensuring finality, certainty, and transparency through a time-bound court-approved process," the telco further added.
To recall, last year in December, Department of Telecom rejected Rcom and Jio spectrum trading deal as it does not conform to its guidelines.
The deal was agreed in 2017, which if cleared RJIL or its nominees will acquire assets under four categories - Towers, Optic Fiber Cable Network ("OFC"), Spectrum and Media Convergence Nodes ("MCN") from RCOM and its affiliates.