Reliance Communications shares fall 3 per cent after Ericsson's insolvency petition

Reliance Communications yesterday said it will challenge Ericsson's petition.

NEW DELHI: Shares of Reliance Communications fell by 3 per cent today after equipment maker Ericsson filed petition against the company under the insolvency and bankruptcy code for recovery of about Rs 1,155 crore.

The stock opened lower and fell further 2.98 per cent to Rs 21.15 on BSE.

At NSE, shares of the company dropped 2.98 per cent to Rs 21.10.

Reliance Communications yesterday said it will challenge Ericsson's petition.

"We wish to inform you that Ericsson India Private Limited (Ericsson), an unsecured operational creditor, has filed petition under IBC provisions against the company in...

National Company Law Tribunal, Mumbai Bench (NCLT)... for recovery of an amount of Rs 491.41 crore," RCom said in a BSE filing.

Ericsson has also filed similar petitions against RCom subsidiaries, Reliance Infratel and Reliance Telecom, for recovery of Rs 534.75 crore and Rs 129.34 crore, respectively, the filing added.

The debt-ridden telecom operator has been given time till December 31 by the lenders to service its debt obligation.

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