Three telecommunications companies from the Anil Ambani-owned Reliance group have been admitted by the Mumbai bench of the National Company Law Tribunal (NCLT) under the Insolvency and Bankruptcy Code (IBC), after Ericsson India moved the tribunal.
Ericsson filed an insolvency petition against Reliance Communications(RCom) and its two subsidiaries, Reliance Infratel and Reliance Telecom, for payment towards services rendered for maintaining, upgrading and developing the telecom infrastructure owned or operated by the three companies
Ericsson will propose a name of an appropriate insolvency resolution professional (IRP) before the NCLT bench of Justice BSV Prakash Kumar and Justice Duraiswamy on May 16. The IRP will have a total of 270 days to work on a debt repayment plan or a liquidation plan that will have to be approved by bankers and the tribunal. Last week legal representatives of Ericsson told the tribunal the three companies owed Ericsson Rs 11.5 billion. Now that the three companies have been admitted under the IBC, other operational creditors could also approach the IRP to recover dues.