RCom Appeals In Bombay High Court To Protect Lenders’ Interest
Debt-ridden telecom operator Reliance Communications Ltd. today said it has filed an appeal before the Bombay High Court to protect interests of secured lenders after an arbitration tribunal restrained the company from sale, transfer or mortgaging of assets.
The interim order came in an arbitration battle being fought between Ericsson and RCom with the Swedish equipment maker trying to recover its dues worth Rs 1,012 crore.
Mukesh Ambani-led Reliance Jio Infocomm Ltd. has signed a pact to acquire mobile business assets including spectrum, mobile towers and optical fibre network of Reliance Communications-owned by his younger brother Anil Ambani.
The deal was expected to complete by March 2018 and bring relief to Reliance Communications, which is reeling under a debt of over Rs 38,000 crore.
The tribunal said the respondent (Ericsson) has made out an arguable case and it is of the opinion that in the event the firm will suffer “irretrievable injury” if it is denied any relief.
Irreparable injury in the opinion of tribunal would mean substantial injury. The applicant cannot be denied a legal remedy that is available under the law.Arbitration Tribunal Order
Ericsson has submitted various claims before the tribunal, including Rs 1,200 crore admitted by Reliance Communications in their correspondence and Rs 1,012 crore dues, which Reliance Communications allegedly failed to pay despite repeated promises, assurance and undertakings.