Negotiations between Reliance Communication (RCom) and Ericsson for a settlement have hit a stalemate with the Swedish telecom equipment maker rejecting two proposals of the Anil Ambani owned operator.
According to people familiar with the development, RCom had offered either a payment guarantee by an Anil Ambani-controlled company or an undertaking by the directors of the telco and its two units — Reliance Infratel and Reliance Telecom — that the Swedish equipment maker would be paid within 15 days if it withdraws its insolvency petition.
Ericsson has dragged RCom to bankruptcy court over non-payment of more than 1,000 crore of dues and National Company Law Tribunal (NCLT) has admitted its petition last week. Sources said that the IRPs would have about a month from the day that the order was announced — May 15 — to set up a committee of creditors (CoC) to which the they will present solutions such as sale of assets, to get the company back on track. The IRPs have set a time frame of 180 days, till November 11to finish the process.
Ericcson’s move to take RCom to NCLT has put on hold the telco’s plan to sell assets to pay back its debtors. The telco planned to pare debt of Rs 46,000 crore by selling assets including towers, fibre network and spectrum to Reliance Jio for 18,000 crore.