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India’s Supreme Court has ruled that RCom must make partial payment of the money it owes to Ericsson
India’s Reliance Communications (RCom) has hit back against recent accusations from Ericsson over unpaid dues, accusing the company of attempting to instigate a trial by media.
On Friday, the Swedish kit manufacturer filed a contempt petition with India’s Supreme Court, calling for the detention of RCom’s chairman, Anil Ambani, until the company makes payment of $78 million (550 crore Rupees) owed to Ericsson.
"It is deeply regrettable that Ericsson India Private Limited (Ericsson), an operational unsecured creditor, is attempting a trial by media and sensationalising issues, as evidenced in recent media reports," an RCom spokesperson said in a statement to the Economic Times of India.
RCom accused Ericsson of trivialising the issue and of trying to instigate a PR campaign against it, in an attempt to squeeze payment terms.
"Needless to say, the Hon’ble Supreme Court has not even considered the matter till date. Ericsson’s conduct as an unsecured creditor gravely endangers and is at the cost of secured lenders comprising 38 banks and secured creditors including 17 public sector banks and 13 foreign banks," the spokesperson said.
Ericsson’s initial contempt petition called for the incarceration of Mr Ambani, until the outstanding debts were settled.
On Monday, India’s Supreme Court ruled that RCom could lodge a partial payment of 118 crore rupees ($16.88 million) with the court. It also issued a four-week deadline for Mr Ambani to respond to requests for the outstanding amount.
