Reliance Communications (RCom) has offered ₹500 crore for an out-of-court settlement with telecom equipment maker Ericsson, while its subsidiary Reliance Infratel has reached an amicable settlement with minority investors led by HSBC Daisy Investments, holding 4.26% stake in the company.
Reliance Infratel’s settlement for more than ₹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 ₹8,000 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 ₹500 crore was made by RCom’s counsel Kapil Sibal at the NCLAT hearing on 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 ₹500 crore against their claim of ₹1,150 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,” said a source in the know of the development. Ericsson India spokesperson was not immediately available for 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 on the ₹25,000 crore deal signed between the Ambani brothers to sell RCom’s assets to Reliance Jio.
Shares of RCom on the BSE rose 4.25% to close at ₹15.95 in a weak Mumbai market on Tuesday.
