His brother Mukesh Ambani’s company Reliance Industries (RIL) and Bharti Airtel can bid for the purchase of assets of debt-ridden Anil Ambani’s company Reliance Communications (RCom) today. RCom’s Committee of Lenders (CoC) is also going to meet on Monday.
This bid will be closed today and by evening the committee will also open them for consideration. RCom, Reliance Telecom, Reliance Telecom Infrastructure among the companies of this group are included under the Insolvency and Bankruptcy Code (IBC). Reliance Telecom has spectrum, while Reliance Telecom Infrastructure has towers and fiber assets. Apart from this, many subsidiaries own RCom’s real estate and data center business.
News agency PTI quoted sources as saying, “On Monday, 5 bidders can bid for RCom. The main competitors include Verde Partners, Bharti Airtel, Reliance Industries, UV Asset Reconstruction Company (UVARCL). Reliance Industries can bid through any of its subsidiaries.
The CoC had earlier extended the bidding limit by 10 days. Bharti Airtel had then withdrawn its bid and is likely to make fresh bids. In addition, private equity firm I Squared Capital is bidding for RCom’s data center and optic fiber assets.
Significantly, in the month of August, the lenders claimed that they owed Rs 49,000 crore to RCom. According to the NCLT order, the company’s resolution process has to be completed by January 10, 2020. Earlier, RCom had tried to repay the debt by selling the entire asset itself, but the deal could not be done for this.
Anil Ambani’s elder brother Mukesh Ambani’s company Reliance Jio was also talked about buying its assets, but Reliance Jio denied buying the assets of RCom as it was not ready to pay the debt liability of the company.
RCom’s insolvency process was initiated on the petition of the Swedish company Ericsson, as the company was unable to repay the debts of Ericsson.