India’s Supreme Court gave the green light for troubled operator Reliance Communications (RCom) to proceed with a INR250 billion ($3.63 billion) asset sale, after the company settled a legal dispute with Ericsson.
Legal wrangling persisted for a number of months as Ericsson continued to chase a INR11.56 billion sum for non-payment of service charges.
Following pressure from authorities, the two eventually settled on a sum of INR5.5 billion.
RCom is planning to complete the sale of assets to Reliance Jio, including spectrum, fibre, towers and real estate, and pay-off Ericsson by the end of August. In a statement, RCom said the two transactions would help to accelerate “its overall debt resolution plan.”
The agreement will see an end to a legal fight which has taken 11 months to resolve.
In September 2017, Ericsson filed a bankruptcy petition against the debt-laden operator in what the vendor described as a “last resort” to resolve the issue.
During the course of a number of hearings, the two were repeatedly rumoured to be close to a settlement. However, as late as last week Ericsson was still threatening to pull out of a potential deal.