Reliance Communications (RCom) has offered ₹500 crore for an out-of-court settlement with Swedish telecom equipment maker Ericsson while its subsidiary Reliance Infratel has reached an amicable settlement with its minority investors led by HSBC Daisy Investments, holding 4.26% stake in the company.
Reliance Infratel’s amicable settlement with the minority investors for over Rs 200 crore paves the way for vacation of the stay granted by the National Company Law Tribunal (NCLT) on the sale of RITL's tower and fibre assets worth Rs 8000 crore.
However, the company needs to exit the debt resolution process under NCLT, for which its appeal, supported by all its lenders is pending before the National Company Law Appellate Tribunal.
The offer for an out of court settlement for Rs 500 crore was made by Rcom’s counsel Kapil Sibal at the NCLAT hearing Tuesday. Following the offer, a two-judge NCLAT bench headed by Justice S . J. Mukhopadhyay asked both firms to settle the dispute.
“Now, the ball in is Ericsson’s court if they want to settle it for Rs 500 crore against their claim of Rs 1150 crore. Both, RCom and Ericsson officials are likely to meet for out of court settlement and the outcome would be known by tomorrow 3 pm when both parties again meet at the NCLAT with the offer,” a source in the know of the development told the Hindu. Ericsson India spokesperson was not immediately available for her comments.
In case, both parties are not able to reach an agreement, RCom will have to go through the insolvency proceedings initiated by the Mumbai bench of NCLT, putting a question mark to Rs 25,000 crore deal signed between the Ambani brothers to sell Rcom’s assets to Reliance Jio.
RCom shares on BSE closed up 4.25%at Rs 15.95 in a weak Mumbai market on Tuesday.
