National Company Law Tribunal: The National Company Law Tribunal (NCLT) has given the green signal to Reliance Jio to buy Anil Ambani’s company.
Anil Ambani Mukesh Ambani Relation: Industrialist Anil Ambani heavily in debtAnil Ambani) is good news for National Company Law Tribunal (NCLT) Reliance Jio (Reliance Jio) has given the green signal to buy Anil Ambani’s company. Mukesh Ambani is going to buy the tower and fiber business of his younger brother Anil Ambani’s Reliance Communications (R-Com) and the deal has been done for Rs 3700 crore. For this, Reliance Jio has also got approval from the National Company Law Tribunal (NCLT).
Reliance Projects and Property Management Services, a subsidiary of Jio, will acquire Reliance Infratel (RITL), which has fiber assets of 1.78 lakh route kilometers and 43,540 mobile towers in the country. RITL is the holding company for R-Com’s tower and fiber assets. There is also a dispute between the banks regarding the funds of the company.
Explain that Anil Ambani resigned from the post of R-Com chairman in 2019 under the Insolvency and Bankruptcy Code (IBC) for failing to pay dues of more than Rs 45,000 crore. Of this, RITL has a debt of Rs 41,500 crore.
Resolution plan was approved in 2020
The tribunal has given its permission to Jio for the acquisition of RITL on Monday. The NCLT has asked Jio to deposit Rs 3,720 crore in an escrow account with State Bank of India (SBI) to complete the process of acquiring R-Com’s tower and fiber assets. The Committee of Creditors had approved Jio’s resolution plan on March 4, 2020, with 100 per cent votes.
dispute in banks
RITL has fiber assets of 1.78 lakh route km and 43,540 mobile towers. It is the holding company for RCom’s tower and fiber assets. There is also a dispute between the banks regarding the funds of the company. This includes SBI, Doha Bank, Standard Chartered Bank, and Emirates Bank. This matter is pending in the Supreme Court. The resolution professional had classified the claims of indirect creditors of RITL at the stage of financial creditors. This was challenged by Doha Bank.
Application was made in NCLT
Reliance Projects had given an application in NCLT earlier this month. It was said that due to the pending action regarding the distribution of the amount, there is a delay in completing the resolution plan. It was also stated that the delay is causing serious losses to Reliance Infratel as well and that the delay may erode the value of RITL’s assets.
Whereas Standard Chartered Bank, SBI, Doha Bank and Emirates Bank and Distribution are fighting in the court. The matter is pending in the court. Doha Bank has challenged the categorization of claims of financial creditors of indirect creditors of Reliance Infratel by resolution professionals.
English News Headline : Mukesh Ambani Jio to buy Anil Ambani Reliance Infratel.