CHENNAI: Bankrupt Reliance Communications’ (RCom) spectrum assets are set to become a matter before the bankruptcy courts yet again on Thursday. The National Company Law Tribunal (NCLT) is likely to hold a hearing on a petition filed by the company’s resolution professional citing fears that that Department of Telecommunications (DoT) is unlikely to renew RCom’s spectrum licences leaving almost nothing worth selling in the company.
Last week, according to industry sources, the bankrupt teleco had approached the NCLT stating that if DoT did not renew its spectrum licences, when they expired on July 27, RCom’s resolution process would be threatened.
RCom currently has spectrum in the 850 MHz band in 14 out of 22 circles in the country and holds a pan-India licence. Under the resolution plan that has been cleared by RCom’s Committee of Creditors (CoC), UV Asset Reconstruction Company Ltd (UVARCL) will buy the spectrum licences for over Rs 12,000 crore, to be paid in phases over 12 years.
Sources say that RCom’s petition to renew its licences for another 20 years has met resistance from the DoT, because the company still has to pay its Adjusted Gross Revenue (AGR) dues as per the SC verdict in 2019 around Rs 26,000 crore. This prompted the company’s RP Deloitte to approach the NCLT last week.