Bankruptcy case of Ambani's RCom which owes Rs 50K cr to banks: Next hearing on May 30

Agencies
May 12, 2019

Mumbai, May 12: The National Company Law TribunalThursday allowed Reliance Communications (RCom) to exclude the 357 days spent in litigation and admitted it for insolvency.

With this, RCom, which owes over Rs 50,000 crore to banks, has become the first Anil Ambani group company to be officially declared bankrupt after the NCLT Thursday superseded its board and appointed a new resolution professional to run it and also allow the SBI-led consortium of 31 banks to form a committee of creditors.

At the last hearing, RCom, through the existing resolution professional, had sought 357 days (from May 30, 2018 to April 30, 2019) exclusion in the insolvency process citing the stays it had on the process by the appellate tribunal and the Supreme Court.

The RP sought the exclusion from May 30, 2018 to April 30, 2019 as the initial insolvency proceedings was stayed by the National Company Law Appellate Tribunal (NCLAT) and later by the apex court.

A bench comprising VP Singh and R Duraisamy said the matter should proceed in a manner of law and in view of the guidelines, the tribunal grants the exclusion of time for Reliance Infratel and Reliance Telecom along with RCom.

RCom was in trouble for years forcing it to discontinue operations two years ago. Its effort to stave off bankruptcy by selling spectrum to Reliance Jio got scuttled after legal and government delays for approvals. But it could not meet any of the several publicly made promises to pay back the lenders by monetising real estate and spectrum assets.

Last month company chairman Anil Ambani managed to avoid a contempt of the Supreme Court and a possible jail term after a last-minute bailout by elder brother Mukesh who extended him over Rs 480 crore to pay back vendor Ericsson, which was the first operational creditor to drag it to NCLT.

Ericsson took the company to NCLT in September 2017 for non-payment of over Rs 1,500 crore dues. Finally they agreed for a Rs 550 crore settlement. 

Earlier, China Development Bank from which RCom had borrowed over USD 1 billion, had dragged it to NCLT which was settled after giving a portion of its headquarters DAKC in the nearby Navi Mumbai.

On May 3, SBI held a meeting to shortlist an RP after issuing a request for proposal in April for a new RP. RCom's committee of creditors will have to approve a new RP with a 66 percent vote after the NCLT starts the insolvency process. 

The Mumbai bench on May 7, also had directed the existing RP to file a progress report by May 30 when it will hear the matter.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
News Network
May 8,2024

sampitroda.jpg

Congress leader Sam Pitroda has stepped down from the post of Chairman of the Indian Overseas Congress and his resignation was accepted by the party. Congress leader Jairam Ramesh took to X and announced that Sam Pitroda had decided to resign from the key post "of his own accord".

Pitroda had been under fire over his controversial remark that Indians in the East resemble the Chinese while those in the South look like Africans.

"We could hold together a country as diverse as India -- where people on East look like Chinese, people on West look like Arab, people on North look like maybe White and people in South look like Africans. It doesn't matter. We are all brothers and sisters," Pitroda said during an interview with The Statesman.

The Congress immediately distanced itself from Pitroda's remarks, terming them "unacceptable".

"The analogies drawn by Mr Sam Pitroda in a podcast to illustrate India's diversity are most unfortunate and unacceptable. The Indian National Congress completely dissociates itself from these analogies," Jairam Ramesh said in a post on X.

The BJP also hit out at the Congress over Pitroda's remarks and termed them "racist and divisive".

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
News Network
May 14,2024

modinetanyahu.jpg

Jerusalem: Israel and India will continue to deepen their bilateral ties and lead to greater prosperity, Foreign Minister Israel Katz said on Tuesday.

Katz was responding to India’s External Affairs Minister S Jaishankar’s message on the occasion of Israel’s 76th Independence Day.

“Thank you for the warm wishes, FM @DrSJaishankar. In celebration of our Independence Day, Israel and India will continue to deepen our ties and lead to greater prosperity,” Katz said in a post on X.

Earlier in the morning, Jaishankar posted on X a 2:03-minute video showcasing the India-Israel relationship through photos of various bilateral meetings between Prime Minister Narendra Modi, himself, and other Indian ministers with Israel Prime Minister Benjamin Netanyahu and other ministers.

“Congratulate FM @Israel_katz and the people of Israel on the occasion of the 76th anniversary of Israel’s Independence. Mazel Tov!,” Jaishankar posted along with the video and repeated the same message in another post in Hebrew.

Meanwhile, President Droupadi Murmu wished her Israeli counterpart Isaac Herzog as she said on X, “I join the people of India in conveying our best wishes to President @Isaac_Herzog, and the people of Israel on the 76th anniversary of Israel’s independence.”

Lok Sabha speaker Om Birla too took to X to post his greetings to his counterpart Amir Ohana, the Speaker of The Knesset: “On the occasion of Israel’s 76th anniversary of independence, I congratulate Speaker of the Knesset @AmirOhana and the people of Israel.”

Both Murmu and Birla also included greetings in Hebrew.

“Thank you, my dear friend @ombirlakota. May the friendship between our nations grow stronger,” Ohana replied to Birla and also added a line in Devnagari script in Hindi, loosely translated as, “Thank you my dear friend Om Birla. May the friendship between our countries be stronger.”

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
News Network
May 8,2024

flightairindia.jpg

Nearly 80 Air India Express flights were canceled after the cabin crew members went on a "mass sick leave", official sources said on Wednesday.

As many as 79 international and domestic flights were canceled after about 300 senior cabin crew members reported sick at the last minute and switched off their mobile phones.

The Air India Express management is currently trying to reach out to the crew, who are protesting against the new employment term at the Tata Group-owned airline, sources said.

The cabin crew has also alleged that there was a lack of equality in the treatment of the staff after the merger with Tata Group. They claim that some staff members were offered lower job position despite clearing interviews, sources said.

"A section of our cabin crew has reported sick at the last minute, starting last night, resulting in flight delays and cancellations. While we are engaging with the crew to understand the reasons behind these occurrences, our teams are actively addressing this issue to minimise any inconvenience caused to our guests as a result," an Air India Express spokesperson said.

"We sincerely apologise to our guests for this unexpected disruption and emphasise that this situation does not reflect the standard of service we strive to provide," the spokesperson added.

Guests impacted by cancellations will be offered a full refund or complimentary rescheduling to another date, the airline said.

Several passengers took to their social media accounts and complained about the sudden cancellations of their flights. They said that they had "no information" about the cancellations.

Some "very disappointed" passengers on X said that they had reached the airport when they were informed that their flights were canceled.

"We apologise for any inconvenience. Please be informed that your flight has been canceled due to operational reasons," Air India Express said in response to one of the posts on X.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.