Reliance Communications, shareholders ink amicable settlement; share price soars 18% in 2 days
Reliance Communications said its unit Reliance Infratel has informed the bankruptcy appeals court of reaching a settlement with its minority shareholders in relation to the sale of its tower and fibre assets.
Reliance Communications share price extended gains on Tuesday after rising over 7 per cent in the previous session. The stock rallied as much as 9.80 per cent to Rs 16.80 on the BSE, rising 18 per cent in the last two days.
The Anil Ambani-owned RCom said its unit Reliance Infratel has informed the bankruptcy appeals court of reaching a settlement with its minority shareholders in relation to the sale of its tower and fibre assets.
"Reliance Infratel, a subsidiary of RCOM has informed the Hon'ble NCLAT today that an amicable settlement has been arrived at between it and minority investors holding 4.26 per cent equity in the Company, and consent terms will be filed shortly," informed RCom in a regulatory filing to BSE.
The settlement will enable the debt-ridden RCom to proceed with asset monetisation as soon as it exits the debt resolution process.
"The settlement with the minority investors paves the way for vacation of the stay granted by the NCLT on the sale of RITL's tower and fibre assets, and will enable the Company to proceed with asset monetisation of Rs 8,000 crore as soon as the Company exits the debt resolution process under NCLT, for which its appeal, supported by all its lenders, is fixed for hearing today i.e. Tuesday, May 29, 2018 before the Hon'ble NCLAT.
WATCH ZEE BUSINESS VIDEO HERE
Notably, the National Company Law Appellate Tribunal (NCLAT) will today hear the plea of Reliance Communications (RCom) challenging National Company Law Tribunal’s (NCLT) decision to start insolvency proceedings against it on a petition filed by Swedish telecom equipment major Ericsson.
In September 2017, Ericsson had filed a petition in the NCLT seeking liquidation of RCom to recover its dues of about Rs 1,150 crore. Ericsson had signed a 7-year deal in 2014 to operate and manage RCom’s telecom network and had alleged that it had not been paid the dues.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
SBI 1777-day FD vs HDFC Bank 55-month FD: What will be maturity amounts for general and senior citizens on Rs 6 lakh and Rs 12 lakh investments?
SBI Guaranteed Return Scheme: Know what State Bank of India is offering to senior citizens and others on 1-yr, 3-yr and 5-yr fixed deposits
50:30:20 Investment Strategy: Can you build Rs 3.9 crore retirement corpus with salary of Rs 30,000?
Know Your Gratuity: Rs 41,000 as last-drawn basic salary and 6 years and 8 months of service; what will be gratuity?
Power of Compounding: How many years will it take to reach Rs 3 crore corpus if your monthly SIP is Rs 4,000, Rs 5,000, or Rs 6,000
Sukanya Samriddhi Yojana vs PPF: Rs 1 lakh/year investment for 15 years; which can create larger corpus on maturity?
12:36 PM IST