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Bloomberg
An Indian court halted bankruptcy proceedings ordered two weeks ago for Reliance Communications Ltd., or RCom, after the debt-laden wireless operator and the local unit of Ericsson AB agreed to settle a dispute over unpaid dues.
The National Company Law Appellate Tribunal put a freeze on the 270-day insolvency process that had been triggered by a May 15 court decision and ordered the operator to pay $81.5 million to Ericsson by the end of September. The initial insolvency ruling came in a suit by the vendor against billionaire Anil Ambani’s RCom over dues, which amounted to 16 billion rupees, Ericsson’s lawyer Arun Kathpalia had said.
The carrier had appealed the lower court order that also drew opposition from creditors including China Development Bank and the State Bank of India.
The latest court order gives the lenders of RCom, with $7 billion in debt, the go-ahead needed to complete a deal to sell its tower, spectrum and fibre assets to Reliance Jio, the upstart wireless operator controlled by Mukesh Ambani.