NEW DELHI: Reliance Communications (RCom) can finally go ahead with the planned sale of spectrum assets to Reliance Jio (RJio). On Wednesday, the firm said that the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) has stayed the Department of Telecom’s (DoT) demand for bank guarantees worth Rs 2,900 crore.
The stay is a major relief for the firm, which is too strapped for cash to pay back creditors like Ericsson, whose Rs 550 crore in settlement payments was due on September 30.
Ericsson on Monday had filed a contempt petition before the Supreme Court stating that RCom had failed to pay its dues before the deadline on September 30 and sought an order to prevent RCom chairman Anil Ambani from leaving the country.
On RCom’s part, it stated that it could pay Ericsson only after the sale of its spectrum assets, also approaching the Supreme Court on September 28 seeking 60 more days for making payment to Ericsson. That matter is scheduled to be heard on October 4.However, with the TDSAT’s stay, the primary hurdle in effecting the sale of its spectrum assets is now out of the way.
“RCom had challenged the unjustly sought security for the alleged demands by DoT (which are wholly disputed) for Spectrum Usage Charges (SUC). After multiple hearings since August 28, 2018, the Hon’ble TDSAT, vide its interim order dated October 1, 2018, has stayed the said demand and directed by DoT to expeditiously grant its approval for trading of the spectrum,” said RCom in an exchange filing.
“38 Secured Lenders of RCom Group have already approved the sale of the above spectrum, and the proceeds thereof will be used for making payments to Ericsson India Private Limited and to RITL Minority Investors, as per settlement terms,” it added.
RCom has been implementing a large-scale monetisation plan to pare down its debt, which had stood at around Rs 45,000 crore at the end of the last financial year. The company had signed a pact with Mukesh Ambani-owned RJio in December 2017, where the latter would buy RCom’s wireless spectrum, tower, fibre and media convergence nodes assets, the proceeds of which were to be used to pare debt.
RCom has, so far, announced the completion of the sale of optical fibre assets worth Rs 3,000 crore and sale of its media convergence nodes worth Rs 2,000 crore to RJio.