The sale of assets from the infrastructure division of defunct operator Reliance Communications (RCom) to an affiliate of Reliance Jio was approved by India’s bankruptcy court as part of a debt resolution plan.
India’s National Company Law Tribunal gave the green light to the proposal, which was already backed by RCom creditors, during its latest hearing on the case yesterday (3 December).
The plan details the sale of tower and fibre assets held by the former operator’s subsidiary Reliance Infratel to a division of Jio parent Reliance Industries.
As part of the deal, the buyer committed to immediately pay INR4.5 billion ($61 million) to be used for working capital by the company currently managing the assets to cover any urgent expenses and repairs.
In January, Reliance Jio’s parent was named as one of the the winning bidders during an auction for various assets held by RCom and its telecoms subsidiaries, after committing to spend INR47 billion.
RCom began the insolvency process in 2019 having been under a debt resolution plan to try and save the company since 2017.