Anil Ambani's Reliance Communications (RCom) which is reeling under a Rs 40,000 crore debt has filed for insolvency. The decision was taken following the board's failure to get unanimous approval of all the 40 shareholders on any matter.
"Despite the passage of over 18 months, lenders have received zero proceeds from the proposed asset monetisation plans, and the overall debt resolution process is yet to make any headway," said RCom in a statement. The company assured the exchanges that it will implement the debt resolution plan through National Company Law Tribunal (NCLT) and seek for a quick resolution.
The company also pointed out to the pendency of numerous legal issues it is facing as one of the causes for failing to resolve the debt. Despite conducting over 45 meetings in the last year, the company said it has been "impossible" to achieve an approval on debt resolution.
Declaring voluntary bankruptcy will be in the best interest of all stakeholders and help a debt resolution in less than a year, said the company.