Arbitration court restrains RCom from selling assets
The order came as a big blow to RCom which had unveiled a plan in December 2017 to sell its wireless assets to Reliance Jio Infocomm Ltd, in an effort to trim debt.
RCom owed banks $7 billion as of March 2017 when it last made public its debt numbers, and more to vendors.
Swedish telecoms equipment maker Ericsson’s Indian subsidiary, which signed a seven-year deal in 2014 to operate and manage RCom’s nationwide network, had filed the insolvency petitions in September 2017, seeking a total of Rs 1,155 crore ($177.82 million).
Reliance Jio and RCom did not immediately respond to Reuters’ requests for comments.
China Development Bank, the biggest foreign lender to RCom, withdrew a petition in January seeking to drag the indebted telecoms carrier into insolvency after the Indian company outlined its debt reduction plan which included the Jio deal.