NCLAT sends RCom back to insolvency

Reliance Communications (RCom) is headed back to insolvency proceedings after an appellate tribunal vacated a stay on such proceedings it had granted in 2018. RCom had paid Rs 550 crore dues, plus interest, totalling Rs 576 crore, under threat of jail for the telco’s chairman Anil Ambani, following legal proceedings in the Supreme Court. “In light of the order passed by the Supreme Court, we allow the appellant (RCom) to withdraw the appeal. The interim order on stay of insolvency proceedings stands vacated,” said a two-judge bench led by Justice SJ Mukhopadhaya on Tuesday.Insolvency proceeding against RCom will now proceed in the Mumbai bench of the National Company Law Tribunal. The NCLAT had earlier observed that if the stay order on insolvency of RCom were to be vacated, Ericsson would have to refund the payments made to Ericsson as an operational creditor. But this matter didn't come up in the NCLAT proceedings on Tuesday.Ericsson had initiated insolvency proceedings against RCom in 2017 over non-payment of dues of over Rs 1,500 crore. The Mumbai bench had admitted the petition but the NCLAT stayed insolvency proceeding after financial creditors, RCom and Ericsson agreed to a settlement.

from Economic Times http://bit.ly/2IRWkz8