Reliance Communications said it will suggest a similar debt declaration plan to the National Company Law Tribunal that it had been pursuing exterior the court.
The Anil Ambani-led Corporation last week announces that it would file for insolvency measures as it failed to sell its assets for paying back its lenders.
"Rcom's management will suggest a similar Debt Resolution Plan in the National Company Law Tribunal (NCLT) process, as was previously being pursued outside the NCLT. Key basics of the Debt Resolution Plan remain unaffected," the company said in a statement.
Sources privy to the expansion said that corporation is opting for debt declaration procedure to overcome the confront of getting 100 percent lenders or creditors endorsement necessary for taking a decision around benefit sale which has been hampering the process asset monetization.
"The Company has been faced with a variety of mostly, indefensible issues raised by the Department of Telecommunications. These issues inter alia resulted in numerous lawful issues at High Courts, TDSAT and the Hon'ble Supreme Court, which aggravated the existing plan and can now be addressed/resolved under the NCLT process.
"Further, challenges raised by difficult minority lenders can now be conquered through the NCLT's 66 percent majority rule, against the 100 percent approvals rule outside NCLT," RCom said.
The company is learned to be under a debt of Rs 38,000 crore exclusive of interest which includes Rs 19,800 crore that it owes to Indian lenders and around Rs 18,200 crore debts from foreign lenders, a source said.
The company has been annoying to sell all telecom communications possessions and range, monetize its marine cable arm GCX, IDC and Indian Enterprise Business, develop 30 million square feet at the Dhirubhai Ambani Knowledge City multifaceted and sale of other real estate assets to clear dues.
However, notwithstanding the passageway of over 18 months, lenders have conventional zero proceeds from the proposed asset monetization plans, and the overall debt declaration process is yet to make any headway.
RCom even failed to sell range to Mukesh Ambani's Reliance Jio a deal that was predictable to bring some relief to the cash-strapped company.
RCom was expectant to realize Rs 975 crore from sale of range to Jio which it promised to use for paying dues of Rs 550 crore to Ericsson and Rs 230 crore to settle dues of alternative stakeholder Reliance Infratel.
Reliance Jio, however, declines to take over any past liability of RCom for which the Department of Telecom may raise demand in future.
"The RCom Board, therefore, sees a fast-track NCLT resolution in 2019, free of all uncertainties and challenges. The Board remains confident on future prospects as a going concern under new ownership on completion of the NCLT resolution process," the statement said.
