The hearing will happen after a joint lenders’ forum (JLF) of the telco led by State Bank of India (SBI) meets later this month. Bankers told FE that they will meet the RCom management on December 21.
The Mumbai Bench of the National Company Law Tribunal (NCLT) on Monday said it will hear the insolvency petition against Reliance Communications (RCom) filed by Ericsson India on January 5. The hearing will happen after a joint lenders’ forum (JLF) of the telco led by State Bank of India (SBI) meets later this month. Bankers told FE that they will meet the RCom management on December 21. Interestingly, the six-month deadline to convert RCom’s debt into equity by lenders under the strategic debt restructuring (SDR) scheme will expire this month. The bench said it will hear the case along with another insolvency petition filed by China Development Bank (CDB) against RCom. The counsel representing the JLF told the tribunal that lenders will hold a meeting by the end of this month and requested the bench to hear the petition after that meeting. Meanwhile, NCLT’s principal bench in New Delhi on Monday allowed transfer of the CDB versus RCom case to court No. 1 from court No. 2 of Mumbai NCLT. While the Chinese Bank had moved the NCLT in November against both RCom and its subsidiary Reliance Telecom, these related cases were listed in different courtrooms of the NCLT. Last month, RCom had said in a stock exchange filing that a majority of its lenders were opposed to the CDB insolvency petition against the telco. It had said at a meeting on November 29, both foreign and Indian banks, aggregating to 31, decided to oppose CDB’s petition at the Mumbai bench of the NCLT. “The lenders also decided to appoint J Sagar Associates as their legal counsel to oppose the said CDB petition at the admission stage itself,” an RCom spokesperson had said.