Jio completes acquisition of Reliance Infratel, pays Rs 3,720 cr to lenders

by IANS |

Mumbai, Dec 22 (IANS) Reliance Jio Thursday completed the acquisition of Reliance Communication Ltd.'s (RCOM) tower and fiber assets by paying Rs 3,720 crore to the lenders.

According to sources, the company has deposited Rs 3,720 crore in the escrow account of the State Bank of India (SBI).

In November, the National Company Law Tribunal (NCLT) had given its approval to Jio for the acquisition of Reliance Infratel (RITL), an RCOM subsidiary that houses the tower and fibre assets.

The tribunal had allowed Jio to deposit Rs 3,720 crore in the escrow account of SBI.

On November 6, Jio moved a petition in the NCLT Mumbai proposing to deposit Rs 3,720 crore in an escrow account of SBI to complete the acquisition of Reliance Infratel.

In November 2019, Jio had placed a bid of Rs 3,720 crore to acquire the tower and fibre asset of RCOM.

The Committee of Creditors has already approved the resolution plan by Jio on March 4, 2020, with a 100 per cent vote, but the acquisition process could not reach finality due to the differences between the lenders over the distribution of funds.

According to an application moved by Reliance Projects and Property Management Services, a subsidiary of Jio, the company had said that due to the pendency of the proceedings over the distribution of the amount and issuance of the 'no dues' certificate, implementation of the resolution plan is delayed.

The petition said, "Such delay is causing severe harm to the interest of the corporate debtor as well as the resolution applicant, and such delay will deteriorate the value of assets."

RITL has fibre assets of around 1.78 lakh route kilometers and 43,540 mobile towers across the country.

According to the NCLT order, the funds will be distributed amongst the lenders once the inter-creditor dispute over the distribution of resolution funds is settled.

SBI and a few other banks, including Doha Bank, Standard Chartered Bank, and Emirates Bank, are engaged in a legal battle over the distribution of funds.

The matter is pending before the Supreme Court.

Doha Bank had challenged the classification of claims from the indirect creditors of RITL as the financial creditors by the resolution professional.

Latest News
Bihar: Man arrested under POCSO Act Sat, Feb 04, 2023, 04:47 PM
Bihar: Man arrested under POCSO Act Sat, Feb 04, 2023, 04:47 PM
Follow path shown by Guru Ravidass: Punjab CM Sat, Feb 04, 2023, 04:44 PM
Ethiopian PM meets Tigray leaders for first time since peace deal Sat, Feb 04, 2023, 04:14 PM
Delhi: Acquitted in Chhawla gang rape case, man, his aide arrested for murder Sat, Feb 04, 2023, 03:58 PM
Avalanche in Afghanistan kills 2, injures 3 Sat, Feb 04, 2023, 03:42 PM
Grenade blast near Sunny Leone's fashion show venue in Imphal Sat, Feb 04, 2023, 03:40 PM
Congress in Kerala says 'no' to hartal Sat, Feb 04, 2023, 03:38 PM
Samsung's new XR headset may be a stand-alone device Sat, Feb 04, 2023, 03:15 PM
Self-defence training for girls: Rs 184 cr allocated, TN schools want more money Sat, Feb 04, 2023, 03:10 PM
5 dead in Chile forest fires Sat, Feb 04, 2023, 03:01 PM
KIYG gives the feel of international events, says U21 hockey star Sharda Tiwari Sat, Feb 04, 2023, 02:49 PM
Logistics startup FarEye lays off 90 employees, 2nd job cut in 8 months Sat, Feb 04, 2023, 02:40 PM
BJP names candidates for 2 Pune Assembly bypolls Sat, Feb 04, 2023, 02:33 PM
PM Modi to visit poll-bound Karnataka, inaugurate various projects Sat, Feb 04, 2023, 02:24 PM