SBI board approves Rs23,000-cr RCom insolvency resolution plan: Report
04 Mar 2020
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The board of State Bank of India (SBI) is reported to have approved a resolution plan for Reliance Communications that would help lenders recover around Rs23,000 crore.
This includes Reliance Jio’s offer for tower and fibre assets of Reliance Infratel Ltd (RITL) and UV Asset Reconstruction Company’s offer for assets of RCom and Reliance Telecom Ltd.
Reports said UVARC has placed a bid of around Rs14,700 crore, while Reliance Jio has made an offer of Rs4,700 crore for tower and fibre assets of Reliance Infratel Ltd. There will also be a clawback of Rs4,300 crore of priority payments made to Chinese and Indian creditors.
“SBI board has approved a resolution plan for RCom. It is expected to vote favourably for the RCom resolution plan at the committee of creditors (COC) Meeting. Voting on the RCom Resolution Plan has started at the COC and will end on March 4,” according to sources close to the development.
Lenders have submitted claims of around Rs49,000 crore against RCom’s secured debt, which is estimated to be around Rs 33,000 crore.
Insolvent RCom has put all of its assets, including spectrum holding of 122 megahertz (MHz), tower business, optical fibre network and data centres, on sale.
The National Company Law Tribunal had put a 10 January 2020 deadline for the committee of creditors (CoC) to complete the entire process but the CoC has sought extension in the deadline.
The resolution professional, Deloitte, is expected to file a resolution plan with the NCLT Mumbai tomorrow.
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