The Anil Ambani-led Reliance Communications has decided to opt for insolvency proceedings, according to a communique released by the company.
“RCom board of directors decides upon implementation of debt resolution plans through NCLT framework,” the company said in the statement.
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“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 told exchanges that it will seek fast-track resolution through National Company Law Tribunal (NCLT) in Mumbai. They will implement the debt resolution plan through NCLT.
“The Board believes this course of action will be in the best interests of all stakeholders, ensuring comprehensive debt resolution in a final, transparent and time bound manner within the prescribed 270 days,” it added.
In September last year, Ambani had announced that the cash-strapped Reliance Communications will be completely exiting the telecom business to concentrate on real estate in future.