With a bid of Rs 25,000 crore, MukeshMukeshAmbani’s Reliance Jio Infocomm and asset reconstruction company UVARC, are learnt to have emerged as the highest bidders for assets of Reliance Communications (RCom) and its subsidiaries, at a Committee of Creditors (CoC) meeting held on Monday.
According to sources, Jio, part of Reliance Industries Ltd, will pay about Rs 4,700 crore for tower and fiber assets of Reliance Infratel Ltd (RITL), while UVARC has offered to pay about Rs 16,000 crore for spectrum, real estate, and enterprise & data centre businesses of RCom and Reliance Telecom Ltd (RTL). The bidders are believed to have committed themselves to paying 30 per cent of the proceeds of Rs 7,500 crore within 90 days.
Emailed queries sent to Jio and UVARC were yet to be responded to at the time of publishing of this report.
The 38 lenders of RCom are to recover 75 per cent of the Rs 33,000-crore outstanding loans, in the highest-ever recovery of dues by financial creditors to the telecom sector, which has seen the exit or shutdown of nine of 12 operators since 2012.
In addition, lenders will claw back the priority payments of Rs 4,300 crore made to Chinese lenders (Rs 1,300 crore) and Indian ones (Rs 3,000 crore). They will start recovering the monetisation proceeds starting March 2020.
The members of the CoC will obtain their respective board approval for a final vote on January 31 to clear the resolution plans ahead of the National Comp any Law Tribunal (NCLT) filing due by February 3.
This round of recovery will also rank among the highest by way of the corporate insolvency resolution process approved by the NCLT across sectors, according to data published by the Insolvency and Bankruptcy Board of India (IBBI).
According to sources, Jio, part of Reliance Industries Ltd, will pay about Rs 4,700 crore for tower and fiber assets of Reliance Infratel Ltd (RITL), while UVARC has offered to pay about Rs 16,000 crore for spectrum, real estate, and enterprise & data centre businesses of RCom and Reliance Telecom Ltd (RTL). The bidders are believed to have committed themselves to paying 30 per cent of the proceeds of Rs 7,500 crore within 90 days.
Emailed queries sent to Jio and UVARC were yet to be responded to at the time of publishing of this report.
The 38 lenders of RCom are to recover 75 per cent of the Rs 33,000-crore outstanding loans, in the highest-ever recovery of dues by financial creditors to the telecom sector, which has seen the exit or shutdown of nine of 12 operators since 2012.
In addition, lenders will claw back the priority payments of Rs 4,300 crore made to Chinese lenders (Rs 1,300 crore) and Indian ones (Rs 3,000 crore). They will start recovering the monetisation proceeds starting March 2020.
The members of the CoC will obtain their respective board approval for a final vote on January 31 to clear the resolution plans ahead of the National Comp any Law Tribunal (NCLT) filing due by February 3.
This round of recovery will also rank among the highest by way of the corporate insolvency resolution process approved by the NCLT across sectors, according to data published by the Insolvency and Bankruptcy Board of India (IBBI).
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