Reliance Communications resolution professional seeks buyers for non-core assets
The winning bidder for RCom, UV Asset Reconstruction Company, and the lenders have given the RP their consent in principle to explore the sale of its unencumbered assets, the people said. The PR, Deloitte-backed Anish Nanavaty, will obtain a new valuation and hold an auction of the assets, similar to the process followed under the Securitization and Reconstruction of Financial Assets and Enforcement of Collateral Act, they said. declared.
The PR has invited expressions of interest by April 17 for six assets: land in Pune (871.1 square meters) and Chennai (3.44 acres); offices on Haddows Road and Bhubaneswar in Chennai; and shares of Campion Properties Ltd and Reliance Realty.
Because the business insolvency and resolution process has exceeded the 330-day maximum allowed by the Insolvency and Bankruptcy Code, lenders are concerned that the court will not allow them to restart the resolution process. So they resort to piecemeal asset selling, one of the people said.
In March 2020, lenders unanimously voted for the UV ARC resolution plan for two bankrupt companies: RCom and Reliance Telecom. They also unanimously approved a resolution plan for Reliance Infratel by Reliance Digital Platform & Project Services, a Reliance Industries group company.
Insolvency proceedings against the three Anil Ambani Group companies began in May 2018, but the process was halted for a year for the lenders to work towards an out-of-court settlement, which they were ultimately unable to reach. .
Since then, there has been a two-year delay due to issues related to the sale of spectrum and the payment of spectrum usage rights to the government based on adjusted gross revenues; and more recently due to the ineligibility of UV ARC as a candidate for resolution.
The Reserve Bank of India had refused to allow UV ARC to participate as a resolution candidate for Aircel, another bankrupt telecommunications company.