Reliance Communications (RCom) was cleared to complete its entire wireless asset sale after a tribunal removed an order restricting the debt-ridden operator from selling its tower and fibre holdings.
The decision comes a day after India’s Supreme Court gave the company permission to sell most of its wireless assets to Reliance Jio, after previously holding up the process due to legal challenges.
RCom said in a statement the National Company Appellate Law Tribunal (NCLAT) had vacated the stay in relation to its fibre and tower assets, and the company was “very confident of achieving overall debt reduction of approximately INR25,000 Crore [$3.8 billion] within the next few weeks”. The company’s tower assets are owned by subsidiary Reliance Infratel.
However, NCLAT ordered the company to deposit the proceeds of the fibre and tower assets in an escrow account for the State Bank of India, and the distribution of the proceeds will be decided by NCLAT on 18 April.
RCom announced in December 2017 it would exit India’s mobile sector, as it looks to reduce a debt load of around $6.9 billion.
The process was held up by legal challenges, including a case by Swedish vendor Ericsson.