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Lenders approve 23k crore resolution plan for Reliance Communication
New Delhi: With lenders approving a Rs 23,000 crore resolution plan for Reliance Communication, as much as Rs 5,500 crore will flow to Chinese banks,...
New Delhi: With lenders approving a Rs 23,000 crore resolution plan for Reliance Communication, as much as Rs 5,500 crore will flow to Chinese banks, clearing about 55 per cent of their principal dues, including of those lenders to whom firm's promoter Anil Ambani had allegedly given a personal guarantee.
In a regulatory filing, RCom said "that in the e-voting conducted pursuant to the meeting of the committee of creditors held on March 2, 2020, which e-voting concluded on March 4, 2020 at 8 pm (IST), the committee of creditors of RCOM has, by way of voting share of 100 per cent of the committee of creditors, approved the resolution plan submitted by UV Asset Reconstruction Company Limited.
"Further, in respect of the subsidiaries of RCOM, i e, Reliance Telecom Limited and Reliance Infratel Limited, which are also undergoing corporate insolvency resolution process under the provisions of the Code, resolution plans submitted by UV Asset Reconstruction Company Limited, and (Jio's subidiary) Reliance Digital Platform & Project Services Limited through its division Infrastructure Projects respectively, have been approved by the committee of creditors of each of the aforesaid companies by 100 per cent voting share," it said.
It, however, did not give details saying the plans will be submitted to the Mumbai bench of the National Company Law Tribunal for final nod. While Reliance Jio will get the tower and fiber assets of Reliance Infratel Ltd for Rs 4,700 crore, UV Asset Reconstruction Co Ltd (UVARC) will get assets of RCom and Reliance Telecom (spectrum) for Rs 14,000 crore, they said.
After considering a clawback clause, the resolution plan fetched Rs 23,000 crore, which will go towards paying dues of Chinese banks, who are the largest lenders, they said, adding Chinese banks will receive Rs 5,500 crore and their principal debt would stand reduced to Rs 4,500 crore.
Against the alleged personal guarantee of one debt, the Chinese banks would receive Rs 1,800 crore (USD 250 million) and their exposure will reduce by 55 per cent to USD 300 million (Rs 2,200 crore).
