Anil Ambani's Reliance Communications to file for insolvency

The company said, declaring voluntary bankruptcy will be in the best interest of all stakeholders and help a debt resolution in less than a year.

Published: 02nd February 2019 01:35 PM  |   Last Updated: 02nd February 2019 08:27 PM   |  A+A-

Anil Ambani, Chairman of India's Reliance Communications. (File | Reuters)

By Online Desk

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.

READ| We bought real-time feed for better customer experience: Reliance Securities CEO

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.

Stay up to date on all the latest Business news with The New Indian Express App. Download now
(Get the news that matters from New Indian Express on WhatsApp. Click this link and hit 'Click to Subscribe'. Follow the instructions after that.)

Comments(1)

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

  • Pamy

    I own 900 shares in rcom@16.33
    6 months ago reply
flipboard facebook twitter whatsapp