Reliance Communication (RCom) has filed for insolvency and has pitched for a fast track resolution through National Company Law Tribunal, this court deals with bankruptcy cases.
The company owned by Anil Ambani owes banks ₹46,000 crore.
The company has been struggling under heavy debt, and a trail of losses after the entry of his big brother Mukesh Ambani in the telecom space. The price war literally forced RCom to shut down its wireless telecom business.
Mr. Ambani has been trying to sell assets to offload the debt which turned unsuccessful. Legal hurdles, and lack of consensus among 40 lenders in 45 meetings yielded no result.
RCom has two units Reliance Telecom Ltd and Reliance Infratel Ltd, both have seeked the intervention of the bankruptcy courts to seek a speedy resolution.
Big brother Mukesh Ambani’s firm Reliance Jio was looking to purchase all of his younger brother’s spectrum and 43,000 telecom towers, which is now off the table as RCom filed for insolvency. However big brother would get a discounted price on all of the assets under the insolvency process.