Shares of ADAG’s Reliance Communications (RCom) rallied 13% in the mid-morning deals on Monday after NCLAT (National Company Law Appellate Tribunal) fixed an urgent hearing against NCLT’s (National Company Law Tribunal) insolvency order tomorrow, 29 May 2018 with regard to the appeal filed by Anil Ambani’s telecom firm. “The appeals filed in the Hon’ble NCLAT against the NCLT orders admitting RCOM, RITL and RTL to the debt resolution process and appointment of the Interim Resolution Professional, were mentioned for urgent hearing today,” Reliance Communications said in an exchange filing.
“The Hon’ble NCLAT has fixed the appeals for hearing tomorrow i.e. Tuesday, May 29, 2018. All banks and financial institutions of the above 3 companies have unanimously decided to oppose the NCLT debt resolution process, RCom said in a statement. “Major lenders, including China Development Bank, State Bank of India and Standard Chartered Bank, have been formally impleaded to the appeal proceedings before the Hon’ble NCLAT,” RCom statement added.
Following the development, RCom share price went up by 13% to a day’s high of Rs 16.15 on NSE while the stock surged 11.23% to a day’s top of Rs 15.85 on BSE on Monday. The stock of Reliance Communications (RCom) emerged as the highest-traded equity shares among all the listed scrips on NSE on Monday. As at 2:06 pm, more than 12.5 crore equity shares exchanged hands on both BSE and NSE with 11.42 crore equity shares on NSE alone.
Earlier on 15 May 2018, the Mumbai bench of the National Company Law Tribunal (NCLT) admitted an insolvency petition filed by Swedish telecom equipment maker Ericsson against Reliance Communications (RCom) and two of its subsidiaries (Reliance Infratel and Reliance Telecom) seeking to recover unpaid dues. Ericsson alleged Reliance Communications (RCom) has not paid the dues and is looking to recover Rs 1,150 crore from Anil Dhirubhai Ambani Group’s telecom firm RCom. Ericsson had signed a seven-year deal with Anil Ambani’s RCom to operate and manage latter’s nationwide network in the year 2014.