New Delhi: In order to do the settlement cordially, RCom has offered an upfront payment of Rs. 500 crore to Ericsson during the proceedings of the National Company Law Appellate Tribunal (NCLAT). Senior Advocate Kapil Sibal, who was appearing on behalf of RCom suggested this. It should be noted that Ericsson has got an insolvency order against RCom. Chairman Justice S J Mukhopadhyaya, heading the NCLAT bench suggested settlement between the parties.
According to PTI, the bench said, “You know the fate of operational creditors (in corporate resolution process). You may not even 5 per cent. If you want we would give you time for settlement.”
The counsel appearing on behalf of Ericsson informed that Ericsson has total dues of Rs 978 crore which have now increased to Rs 1600 crore.
The bench said that if you want, we can allow settlement. Find out ways and means to solve the issue.
To hear the interim prayer of RCom to stay the NCLT order, the tribunal has listed the hearing for tomorrow. Notably, the order of NCLT, earlier, had directed to start insolvency proceedings against it over the Ericsson plea.
On behalf of RCom, Sibal said that RCom has a total debt of around Rs 46,000 crore. RIL’s Jio has offered Rs. 17,000 crore of upfront payment along with spectrum dues and transfer of debts as it is buying the assets of RCom.
Notably, the Mumbai bench of the NCLT (National Company Law Tribunal) admitted the insolvency petition filed by Ericsson against Reliance Communications and its two subsidiaries seeking to recover unpaid dues.
Ericsson had signed a 7-year deal in 2014 to operate and manage RCom’s nationwide telecom network, had alleged that it had not been paid the dues.
The Swedish company had filed the petition in the Mumbai bench of NCLT seeking liquidation of the telecom operator to recover Rs 1,150 crore that RCom allegedly owes it in September.