Reliance Communications To Challenge Ericsson’s Insolvency Petition
Ericsson has also filed similar petitions against Reliance Communications subsidiaries.
Reliance Communications Ltd. on Wednesday said it will challenge equipment maker Ericsson’s petition against it under the Insolvency and Bankruptcy Code for recovery of about Rs 1,155 crore.
"Ericsson India Private Limited (Ericsson), an unsecured operational creditor, has filed petition under IBC provisions against the company in... National Company Law Tribunal, Mumbai Bench (NCLT)... for recovery of an amount of Rs 491.41 crore," Reliance Communications said in a BSE filing.
Ericsson has also filed similar petitions against Reliance Communications subsidiaries, Reliance Infratel and Reliance Telecom, for recovery of Rs 534.75 crore and Rs 129.34 crore, respectively, the filing added.
"Today, after hearing the parties, the NCLT has adjourned the matter to 26th September, 2017. The company intends to challenge the said petitions," Reliance Communications said.
The debt-ridden telecom operator has been given time till December 31 by the lenders to service its debt obligation. It has been reeling under a financial crisis following cut-throat competition over tariff.