The committee of creditors (CoC) of Reliance Communications (RCom) has started voting on a resolution plan that will conclude on Wednesday. Lead lender State Bank of India (SBI) is likely to have voted in favour of the plan, sources close to the development told FE. The SBI board has already approved RCom resolution, according to a source.
The stand of China Development Bank (CDB), which has around 30% voting share in the CoC, remains unclear as it had raised the issue of disproportionate share in the resolution plan earlier, sources told FE. According to the Insolvency and Bankruptcy Code (IBC), a 66% vote is required for the CoC to approve a resolution plan. RCom’s secured debt is estimated to be around Rs 33,000 crore.
The lenders will vote on bids received from Reliance Jio and UV Asset Reconstruction Company (UVARC). The CoC had earlier declared Reliance Jio and UVARC as H1 bidders for different assets of the company. UVARC had bid for spectrum, real estate, and enterprise and data centre businesses of RCom, while Reliance Jio had bid for tower and fibre assets. UVARC is learnt to have placed a bid of around Rs 14,700 crore, while Reliance Jio has made an offer of Rs 4,700 crore for the tower and fibre assets of Reliance Infratel.
The Anil Ambani-led company had put all of its assets on sale, including 122 MHz of spectrum, its tower business, optical fibre network and data centres. As per the latest directive by the National Company Law Tribunal (NCLT), the resolution has to be completed by March 10.
The CoC is expected to complete voting on resolution plan by March 4 to file with the NCLT within the deadline. RCom is under insolvency process since June 18, 2019, working under resolution professional Anish Narayan.