Tech Mahindra files insolvency cases against Reliance Communications

Tech Mahindra
Tech Mahindra has filed three cases against Reliance Communications and two of its subsidiaries in the National Company Law Tribunal (NCLT) under the Insolvency and Bankruptcy Code (IBC), according to a report by Mint.

 

The Ambani’s firm owes Tech Mahindra Rs 3.6 crore, Reliance Telecom owes Rs 3 crore, and Big TV owes Rs 1.5 crore, the report added.“Tech Mahindra has filed these cases in its capacity as the operational creditor of RCom and its subsidiaries. The liabilities mentioned in the petition arising out of the service agreements between Tech Mahindra and the Reliance firms involved,” a person was quoted as saying to Mint.

The cases were filed on September 26, while the petitions are yet to be admitted and these cases will be heard on October 6, as per the report. RCom, with a debt pile of over Rs 45,000 crores, is making all efforts to clear trying to pare its debt. The firm had announced its plans to cut debt by 60% in June this year. According to the company after asset sale, it will repay 80% of the debt amount.

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Apart from Tech Mahindra, the Indian unit of Sweden’s Ericsson has also filed cases against RCom and two of its subsidiaries, Reliance Infratel Ltd and Reliance Telecom Ltd. RCom had been facing opposition from some of the other operational creditors like Indus Towers Ltd, Bharti Infratel Ltd and GTL Infrastructure Ltd among others.

Earlier this month, RCOM called off the merger with Aircel, because of regulatory delays and interventions by vested interests.

The company has been adopting other initiatives to reduce its debt. According to a Medianama report, RCOM had put for sale its 318,000 sq ft Reliance Centre office in New Delhi and a 600,000 sq ft DAKC- World Class IT park in Navi Mumbai, to clear off a part of its mounting debt. The sale was expected to fetch Rs 11,000 crore.

RCom might look at selling its DTH business, Reliance Digital TV, to reduce debt.

Rcom: Website

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