RCom said that lack of support from its lenders for the proposed deal meant that it was unable to proceed
Reliance Communications (RCom) has cancelled the planned sale of its assets to Reliance Jio, according to a report in the Indian Press.
The Economic Times of India quoted a burse filing, which outlined difficulties in securing permission from lenders as the reason for the collapse of the deal.
"The agreements dated 28th December 2017 and 11th August 2018 entered into between RCom, RTL, RITL (RCOM Group) and RJIL respectively for sale of certain specified telecom assets have been terminated today by mutual agreement," the filing said.
Under the terms of the agreement, RCom would have transferred ownership of 122.4MHz of spectrum to Reliance Jio, along with over 43,000 telecoms towers.
In February, RCom confirmed that it would be filing for bankruptcy, as its levels of debt spiralled out of control. Monies raised from the asset sale had been earmarked to help to service the debt.
Yesterday, the debt-ridden telco confirmed it had made payment of $77 million of unpaid dues to Swedish tech giant, Ericsson. The payment meant that RCom’s chairman Anil Ambani avoided a three-month custodial sentence, thanks to last minute assistance from his brother, Mukesh Ambani.
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