The committee of creditors (CoC) for Reliance Communications (RCom) on Wednesday extended the deadline for submission of bids for the company's spectrum by 10 days.
The committee of creditors (CoC) for Reliance Communications (RCom) on Wednesday extended the deadline for submission of bids for the company’s spectrum by 10 days. According to sources, the bids will now open on November 25. The NCLT (National Company Law Tribunal) has directed the resolution professional to conclude the sale of RCom assets by January 10, 2020. The stressed telco’s secured debt is estimated at Rs. 33,000 crore.
So far, the lenders have received bids from Bharti group companies and private equity investor Varde Partners, while Reliance Jio is also expected to put in its bid, two people with knowledge of the developments told FE.
According to reports, Jio had sought extension of the November 12 deadline to make an offer under the ongoing insolvency proceedings for RCom’s assets. As part of the insolvency proceedings for RCom and two of its units (Reliance Infratel and Reliance Telecom), the resolution professional (RP) has asked for bids from interested bidders for spectrum in the 850 MHz band used in 4G in 14 of India’s 22 telecom circles, around 43,000 telecom towers and fibre.
Earlier, Jio had expressed interest to acquire RCom’s wireless assets. However, the deal fell through after the Department of Telecommunications’ (DoT) demand that Jio will have to pay for RCom’s past spectrum dues. RCom filed for bankruptcy after it failed to complete the transaction. However, RJio had bought around 47.50 MHz spectrum in the 800 MHz band from RCom through trading in January 2016. The spectrum was acquired across 13 circles and is currently being used by Jio to provide 4G services.