The China Development Bank (CDB) has filed an insolvency case against debt-ridden Reliance Communications (RCom) under the Insolvency and Bankruptcy Code (IBC), becoming first of the telecom firm's lenders to do so, according to a report by Mint.
According to the report, the Beijing-based financial institution filed the insolvency case before the Mumbai bench of the National Company Law Tribunal (NCLT) on November 24 and that law firm Trilegal is advising the CDB.
RCom owes around USD 2 billion in syndicated loans to the Chinese lender.
Earlier, other lenders of RCom, Ericsson India and Manipal Tech had filed bankruptcy petitions against the telecom company.
Media reports suggest that Tech Mahindra, too, had filed and later withdrawn a petition that sought settlement talks.
If CDB’s petition is admitted by the NCLT, domestic lenders will have to set up a creditors committee which will work with an insolvency resolution professional and chalk out a revival plan for RCom.
Jio shows interest in buying RCom spectrum
Meanwhile, Reliance Jio is likely to chase RCom's 4G spectrum in the 850 MHz band in seven key circles, according to a report by The Economic Times.
RCom had got the spectrum during its merging with Sistema Shyam Teleservices (SSTL).
The report cites sectoral experts seeing Jio aggressively chasing Sistema Shyam's spectrum in Delhi, Kolkata, Karnataka, Kerala, Tamil Nadu, UP-West and West Bengal which is valid till FY2033.
Last week, Bharti Airtel had said that it is interested in buying selected spectrum and some equipment of Reliance Communications (RCom).
Lenders are currently in the process of selling RCom's assets in a bid to recover some portions of the roughly Rs 45,000-crore debt.
Disclaimer: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd.
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