RCom vs Ericsson: NCLT adjourns case hearing to October 6

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26 Aug, 2025 12:21

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The insolvency court has adjourned the hearing of the case between Reliance Communications (RCom) and Ericsson to October 6.

RCom will file its reply to Ericsson's petition before the next hearing and the former will be heard in the National Company Law Tribunal (NCLT) on October 6, according to CNBC TV18 reports.

In a stock exchange filing on September 13, RCom said Ericsson India has filed a petition under the Insolvency and Bankruptcy Code (IBC) to recover Rs 491.41 crore from the company. "Ericsson has also filed similar petitions against Reliance Infratel Limited and Reliance Telecom Limited, subsidiaries of the company for recovery of an amount of Rs 534.75 crore and Rs 129.34 crore respectively,” the company filing said.

RCom had said it intends to challenge the said petitions.

This came amid proposed merger plans, agreed upon in June, between RCom and telecommunications firm Aircel after a consortium of 22 lenders to RCom had approved invocation of Reserve Bank of India’s strategic debt restructuring (SDR) scheme to convert the company’s debt into equity in order.

In the plan, banks would hold this equity till pending deleveraging transactions and the proposed merger with Aircel concluded. Conversion of the debt to equity had allowed banks to defer additional provisioning on nearly Rs 22,000 crore in loans.

Further, it also planned to sell 51 percent stake in its tower arm to Brookfield for Rs 11,000 crore.

The two transactions, if successful, would bring down RCom’s debt by Rs 25,000 crore, or 60 percent of the total debt worth Rs 47,332 crore.

RCom had said that bankers agreed to give seven months extension till December.

However, as per reports, RCom, on its part, has reassured lenders that it will complete pending merger and sale transactions in time.

In addition, banks involved in the RCom case have been bothered by the news that Aircel is considering insolvency as an option to deal with its own financial stress.