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Reliance Communications has been struggling with its debt levels in recent months
India’s Reliance Communications (RCom) is to file for insolvency, as the Indian firm struggles to make debt repayments.
The Anil Ambani led telecoms giant officially confirmed the news on Friday through a statement to the press.
“The Board of Directors of RCom today reviewed the progress of the company’s debt resolution plans since the invocation of the SDR on 2nd June 2017. The Board noted that despite the passage of over 18 months, lenders have received zero proceeds from the proposed asset monetisation plans, and the overall debt resolution process is yet to make any headway,” the company statement said.
“Accordingly, the Board decided that the Company will seek fast track resolution through NCLT, Mumbai," it said.
RCom has received strong criticism from its creditors in recent months, with Ericsson India recently calling for Mr Ambani to be incarcerated over RCom’s unpaid debts. Last month, Ericsson submitted a contempt petition to the country’s Supreme Court in an attempt to force RCom to make payment of an outstanding $78m of debt.
RCom said that its decision to file for insolvency would allow the company to resolve its debts in the most "transparent" manner possible.
“The Board believes this course of action will be in the best interests of all stakeholders, ensuring comprehensive debt resolution in a final, transparent and time bound manner within the prescribed 270 days,” the statement read.
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