Troubled Indian operator Reliance Communications had said it is in talks with Ericsson to sort out a debt of $150 million outside of bankruptcy court, but Reuters reported a settlement is unlikely.

Earlier this week the National Company Law Tribunal (NCLT) accepted Ericsson’s request for RCom to face bankruptcy proceedings over the debt. This puts into jeopardy RCom’s plans to sell most of its wireless assets to Reliance Jio.

Jio may have to submit a new bid for RCom’s assets, as rivals may now be interested in putting forward their own bids.

In a statement, RCom said: “We confirm that RCOM and Ericsson are at an advanced stage of discussions to expeditiously resolve commercial issues. This will enable Reliance Communications to exit the NCLT process.”

“RCom is confident to expeditiously proceed with its monetisation plan with Reliance Jio and overall Resolution Plan with the lenders, keeping in mind the interests of all stakeholders,” the statement added.

However, “a settlement currently looks uncertiain” a source told Reuters, citing lack of clarity around payment of dues. A deal would require RCom to agree to deposit the sum it owes Ericsson and the vendor to then withdraw its plea, the source said.

The NCLT’s decision means RCom will either need to be sold or liquidated within nine months, otherwise the court will appoint an administrator to step in.