Ericsson Sensationalising Issues : RCom

Anil Ambani-led Reliance Communications (RCom) has accused Ericsson of distorting facts and sensationalising the contempt petition filed against the telecom operator. It said this may impact its repayment to other creditors.

“It is deeply regrettable that Ericsson India Private Limited (Ericsson), an operational unsecured creditor, is attempting a trial by media and sensationalising issues,” said a RCom spokesperson in a statement.

This statement came in the wake of reports that Ericsson has filed a contempt of court petition against RCom seeking its Chairman Anil Ambani be held and not allowed to flee from the country.

“The recent contempt petition filed by Ericsson, as referred in media reports last week, has not even been served on RCOM as of date, and yet Ericsson is widely sharing the same with media and distorting issues. Needless to say, the Hon’ble Supreme Court has not even considered the matter till date,” the statement added.

The Anil Ambani-led firm owes Rs 550 crore to Ericsson and the operator has already missed two deadline set by the apex court to make the payment. The first deadline was in September 2018 and when RCom missed this Ericsson filed a contempt petition against the operator. The apex court then gave time till 15 December to make the payment. RCom missed that. too.

The Junior Ambani, however, had given a personal guarantee to the court to make the payment once its assets sale to Jio is completed. On the other hand DoT has not given its approval for this deal.

RCom, in this regard, has also filed a contempt petition against the DoT for not complying to the Supreme Court’s order to approve the deal.

Separately, DoT has not approved the deal yet as Jio, the proposed buyer, is not ready to offer any undertaking for any due that may appear after the asset sale. The DoT, however, wants no ambiguity in the deal and demands that all the creditors’ money should be taken care of by the operator.

RCom has a debt of Rs 46,000 crore, including Ericsson’s Rs 550 crore, and the operator wishes to lower the debt by Rs 18,000 crore from selling some of its assets to Jio as well as Canadian firm Brookefield.

 

 

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