Debt-ridden Reliance Communications is looking to complete the sale of its business assets worth ₹25,000 crore by the end of this month and has also agreed to pay ₹550 crore towards settlement to telecom gearmaker Ericsson by September-end.
Reliance Communications, in a regulatory filing, said that it had “agreed to pay a settlement amount of ₹550 crore to Ericsson on or before September 30, 2018.” The Supreme Court on August 3 approved the settlement between RCom and Ericsson India Pvt. Ltd. over a payment dispute and asked the telecom company to pay ₹550 crore to the Indian arm of the Swedish firm by September 30.
Ericsson India Pvt. Ltd., which had signed a seven-year deal in 2014 to operate and manage RCom’s nationwide telecom network, had alleged that it had not been paid the dues of over ₹1,500 crore and challenged the debt-ridden firm before National Company Law Appellate Tribunal (NCLAT) .
A Supreme Court Bench perused the May 30 interim order of the NCLAT and noted that Ericsson India Pvt. Ltd. was willing to settle its debt of over ₹1,500 crore for a sum of ₹550 crore which was to be paid by RCom within 120 days.
The apex court on August 3 allowed RCom to sell assets covering spectrum, fiber, telecom towers, MCNs and certain real estate assets, for an aggregate value of approximately ₹25,000 crore.
“The company expects to complete all these transactions by end the month, August 2018, thereby accelerating its overall debt resolution plan,” RCom said.
RCom has entered into an agreement with Mukesh Ambani-led Reliance Jio and asset management firm Brookfield to sell telecom business assets.
