RCom nears settlement on Ericsson debt

first_img Troubled Indian operator Reliance Communications (RCom) and Ericsson moved closer to reaching a settlement over the operator’s outstanding debt, which would allow it to exit bankruptcy proceedings and sell its wireless assets to Reliance Jio in order to pay off debt, The Economist Times (ET) reported.The two companies, after lengthy negotiations, reportedly are discussing a deal of between INR6 billion and INR7 billion ($89 million and $104 million), with Ericsson lowering the amount it needs to resolve the dispute. Ericsson earlier told the court it would need at least INR9.8 billion, despite previously claiming RCom owes it about INR16 billion, ET said.Both companies will submit their settlement offers to the National Company Law Appellate Tribunal today (30 May). A source told ET Ericsson may require a bank guarantee for payment.A settlement would allow RCom to exit debt resolution proceedings ordered in mid-May by the National Company Law Tribunal (NCLT) and move ahead with the sale of assets to Jio.Talks beginTwo weeks ago RCom said it was in talks with Ericsson to sort out a debt of $150 million outside of bankruptcy court.In mid-May the NCLT accepted Ericsson’s request for RCom to face bankruptcy proceedings over the debt, which put into jeopardy its plans to sell most of its wireless assets to Jio.RCom’s shareholders in February approved a plan to sell its wireless assets to Jio, in a move which will cut the struggling operator’s debt load by INR250 billion. AddThis Sharing ButtonsShare to LinkedInLinkedInLinkedInShare to TwitterTwitterTwitterShare to FacebookFacebookFacebookShare to MoreAddThisMore 30 MAY 2018 Previous ArticleRussia presses Apple on Telegram banNext ArticleAPT awarded first trial 5G licence in Taiwan Joseph Waring Jio profit soars on subscriber gains HomeAsiaNews RCom nears settlement on Ericsson debt 2degrees taps Ericsson for 5G RAN, core equipment Relatedcenter_img Author Ericsson-Samsung patent deal ends legal disputes Joseph Waring joins Mobile World Live as the Asia editor for its new Asia channel. Before joining the GSMA, Joseph was group editor for Telecom Asia for more than ten years. In addition to writing features, news and blogs, he… Read more Asia Tags EricssonReliance CommunicationsReliance jiolast_img

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