New Delhi: The NCLAT on Wednesday granted conditional stay on insolvency proceedings against RCom and its subsidiaries -- Reliance Infratel and Reliance Telecom, allowing them to proceed with the sale of their assets to Reliance Jio.
The tribunal also directed RCom and its subsidiaries to pay Rs 550 crore to Ericsson India in 120 days, failing which it will direct insolvency proceedings against the company.
The period would start from June 1.
The move provides relief to the debt-ridden telecom firm led by Anil Ambani as it expects to monetise asset worth Rs 25,000 crore from their sale to Reliance Jio.
A two member bench headed by Chairman Justice S J Mitttal also directed the Chairman/Managing Director of RCom to file an undertaking regarding payment of the amount.
Ericsson India would also file an undertaking before NCLAT over acceptance of the offer.
RCom had yesterday offered an upfront payment of Rs 500 crore to its operational creditor Ericsson, which has got an insolvency order against the Anil Ambani group firm.
Ericsson had total dues of Rs 978, which have now increased to Rs 1,600 crore, counsel appearing for Ericsson had informed
On May 15, the Mumbai bench of the National Company Law Tribunal (NCLT) had admitted an insolvency petition filed by Ericsson against Reliance Communications and two of its subsidiaries seeking to recover unpaid dues.
Ericsson, which had signed a 7-year deal in 2014 to operate and manage RCom's nationwide telecom network, had alleged that it had not been paid the dues.