Bankrupt Reliance Communications’ committee of collectors (CoC) will meet on Thursday as a part of a long-running insolvency course of that, in accordance with consultants, is heading in direction of cancellation of the second largest phone firm in India.

The agenda of the assembly was not disclosed in a submitting to the inventory market. Emails despatched to a call professional for RCcom weren’t answered by press time.

RCom, which was dwelling to Anil Ambani’s telecom firm, has been present process insolvency for over 4 and a half years. The corporate was despatched to chapter court docket in Might 2018 and began insolvency proceedings underneath the Insolvency and Chapter Code (IBC) in 2019.

Below the method, the case, enterprise and property are managed by Decision Skilled (RP), Deloitte’s Anish Niranjan Nanavaty appointed by the Nationwide Firm Legislation Tribunal, Mumbai Bench (NCLT Mumbai) from in June 2019.

The decision plan by UV ARC’s profitable bidder, Asset Renewal Firm (ARC), was permitted in March 2020 underneath a scheme the place ARC will purchase the telco’s spectrum for Rs. 12,760 crore in revolving funds over a interval of 10 years, with an upfront cost. Rs 5 crore.

Indian banks, merchants and lenders have demanded Rs 86000 crore from RCom, and the telco owes the DoT Rs 26000 crore in mixture income (AGR). The verified debt is Rs 50,623 crore.

However the insolvency course of is in limbo as UV ARC, an asset restoration firm (ARC), is deemed ineligible to take part within the course of resulting from new guidelines by the Reserve Financial institution of India. collaborating in tenders for corporations present process insolvency proceedings so long as they’ve property of Rs 1000 crore and above. UV ARC, the profitable competitor within the occasion of RCom’s failure, in addition to Aircel, has NOF beneath Rs 200 crore in accordance with trade estimates.

Collectors now have two choices – both restart the decision course of, or ask the adjudicating authority – the NCLT to approve the liquidation of the corporate, authorized consultants mentioned.

If the method is restarted, the property is not out there to the candidates for the choice. RCom’s principal asset is the tower of Reliance Infratel, which has been purchased by the Reliance Jio group. One other main asset is the spectrum rights it owns.

Nonetheless, the corporate is embroiled in a authorized battle over using spectrum as company property within the insolvency proceedings because the Division of Telecommunications has declared the spectrum to be nationwide property. , and due to this fact can’t be offered as a part of a decision plan.

Moreover, the corporate’s telecom license expires in 2021, that means it has no proper to make use of the spectrum it owns. As soon as the corporate loses the rights to the spectrum, the property (spectrum) has little worth, analysts say.

Supply hyperlink