RCOM decides to file for insolvency; plans to come out with debt resolution plan

Reliance Communications (RCOM) has decided to file for insolvency as its lenders have received zero proceeds from its proposed asset monetisation plans even after a period of 18 months. The move comes after RCOM’s asset sale to Reliance Jio Infocomm Limited failed to receive a no-objection certificate from the Department of Telecommunications as Reliance Jio refused to submit an undertaking to the government to settle RCOM’s dues. RCOM will now file an application at the Mumbai bench of the NCLT along with its units Reliance Telecom Limited and Reliance Infratel Limited. Meanwhile, RCOM is planning to come out with a debt resolution plan soon to sell its telecom infrastructure assets, airwaves and real estate in a bid to resolve its debt.

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