The lead creditor of bankrupt operator Reliance Communications (RCom) approved an insolvency resolution plan which will likely include the sale of assets to Reliance Jio among a range of other measures, The Economic Times (ET) reported.
Sources told the newspaper the board of the State Bank of India agreed to the proposal to offload assets owned by RCom and subsidiaries Reliance Infratel and Reliance Telecom. Part of the move would see the creditor accept an offer by Reliance Jio to buy tower and fibre assets from Reliance Infratel for INR47 billion ($642.5 million).
Financial services company UV Asset Reconstruction Company reportedly offered INR147 billion for a number of other items including real estate and data centres.
Creditors are expected to recover a total of INR230 billion from the whole liquidation process. ET estimated RCom’s secured debt at INR330 billion.
RCom began insolvency proceedings in February 2019 after India’s Department of Telecommunications rejected its plan to sell assets to Reliance Jio, a move designed to raise the funds to stave off creditors.
Its exit from the market followed a turbulent period with a number of attempted deals to save the company falling through.