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Reliance Communications confident on stake sale approval even as Supreme refuses to lift stay

Reliance Communications confident on stake sale approval even as Supreme refuses to lift stay

Reliance Communications confident on stake sale approval even as Supreme refuses to lift stay
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By CNBCTV18.COMMar 24, 2018 7:14:08 AM IST (Updated)

Reliance Communications and lenders backing the firm led by SBI filed for Special Leave Petitions (SLPs) in the Supreme Court which were heard on Thursday.

After a huge setback from the Supreme Court (SC) who directed Reliance Communications (RCom) to hold on from selling its assets to Reliance Jio for Rs 25,000 crore, the company, in a statement on Thursday said that it remains confident of its asset sale plan before August 31, 2018.

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“RCom and its Lenders led by SBI have filed Special Leave Petitions (SLPs) in the Hon'ble Supreme Court against the stay granted by two lower Courts on sale of certain assets by the Company. The SLPs were heard today, and notices have been issued to the Respondents, Ericsson and minority investors holding approx. 4% in Reliance Infratel, allowing them time to file their replies by 28th March, 2018,” the company said in a statement.
The matter will come up for hearing on April 5, 2018.
The company further said, “As legally advised, RCom remains confident that its asset monetisation programme will be completed expeditiously to protect the interests of its secured lenders, much in advance of the time limit of 31st August, 2018 prescribed by the RBI for resolution of such cases."
The SC, while staying its asset sale plant to Jio, said that the details on the asset sale will be issued with its final order.
RCom had submitted its resolution plan in December, which stated that its wireless spectrum, tower, fiber and media convergence node (MCN) assets will be bought by Jio.
RCom is selling its assets to reduce its debts by Rs 39,000 crore. The plea, however, was rejected by Bombay High Court on March 8.
The SC Bench has refused to lift the stay ordered by Bombay High Court on RCom asset sale. The next hearing will be held on April 5, where the court will hear the lenders' plea, led by the State Bank of India and the firm itself against the stay of assets sale.
(Disclosure: RIL, the promoter of Reliance Jio, also controls Network18, the parent company of CNBCTV18.com)
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