Reliance Communications Ltd will be filing for bankruptcy to resolve its debt related matters. The Anil Ambani-led company that has over Rs 40,000 crore in debt said on Friday evening that has been unable to gain 100 percent approval of all its 40 lenders on any matter.
"Despite the passage of over 18 months, lenders have received zero proceeds from the proposed asset monetisation plans, and the overall debt resolution process is yet to make any headway," it said in a statement.
The company told the stock exchanges that it will be going for fast-track resolution through National Company Law Tribunal (NCLT) in Mumbai and implement the debt resolution plan.
Reliance Communications said that in the last 12 months it has found it "impossible" to receive approval on the debt resolution matter despite over 45 meetings with the lenders. Legal challenges from Department of Telecommunications (DoT), numerous pending legal issues at high courts, Telecom Disputes Settlement & Appellate Tribunal (TDSAT) and the Supreme Court were reasons for the decision.
The company ensured that the course of action will be in the best interest of all stakeholders and ensure comprehensive debt resolution in a final, transparent and time-bound manner within the prescribed 270 days.
It was further clarified that only Reliance Communications and two of its subsidiaries that is Reliance Telecom Ltd and Reliance Infratel Ltd would be implementing this board decision. There will be no impact on the businesses of its other subsidiaries, including GCX, Reliance IDC and others.