RCom had sought to exclude the company for the period from May 30, 2018, to April 30, 2019, at the last hearing.
New Delhi| Anil Ambani-led RCom, Reliance’s telecommunication company has now officially been declared as bankrupt. The debt-ridden company owes more than Rs 50,000 crores to the banks.
On Thursday, the National Company Law Tribunal (NCLT) admitted RCom for insolvency. It appointed a new resolution professional to run the company and also allowed to form a committee of creditors by the consortium of 31 banks led by the SBI.
RCom had sought to exclude the company for the period from May 30, 2018, to April 30, 2019, at the last hearing. It cited that the initial insolvency proceedings were stayed by the National Company Law Appellate Tribunal and later by the Supreme Court.
The fierce competition in the telecom sector had resulted in RCom running into heavy losses. The onslaught of the availability of telecom services at cheaper prices introduced by Anil Ambani’s elder brother Mukesh Ambani through Reliance Jio had threatened many competitors.
RCom’s attempt to prevent bankruptcy proceedings from kicking in by selling spectrum to Reliance Jio did not work out as the government did not clear the deal.
As an independent media platform, we do not take advertisements from governments and corporate houses. It is you, our readers, who have supported us on our journey to do honest and unbiased journalism. Please contribute, so that we can continue to do the same in future.
