RCom seeks 60 days more to pay Ericsson deal settlement
Mumbai : Reliance Communications (RCom) on Tuesday said the company has sought another 60 days for repayment of Rs 550 crore to its unsecured creditor, the Swedish telecom major Ericsson, as its spectrum sale could not be completed due to factors beyond control.
Clarifying on media reports, RCom said in a stock exchange filing that it has submitted an application for approval of the spectrum sale with the Department of Telecommunications (DoT) on August 7, 2018.
"Ericsson India Private Limited (‘Ericsson'), an unsecured creditor of RCom, is understood to have filed a contempt petition on October 1, 2018, in the Supreme Court in relation to the settlement amount of Rs 550 crore to be paid by RCom. This filing is unwarranted," RCom said.
The company said it has already filed an application on September 28 in the Supreme Court seeking a 60-day extension for making payment to Ericsson and matter is scheduled to be heard on October 4.
"The extension has been sought purely due to the fact that, as approved by 38 secured lenders, and as per RCom's undertaking, Ericsson is to be paid from the sales proceeds of spectrum being traded by RCom, and such sale could not be completed as yet owing to factors beyond the control of RCom," the filing said.
"However, DoT unjustly sought securitization of alleged demands (which are wholly disputed) for Spectrum Usage Charges amounting to Rs 2,900 crore. This demand of DoT has been challenged by RCom before the Telecom Disputes Settlement and Appellate Tribunal (TDSAT)," it said.
According to RCom, multiple hearings have already taken place in the matter since August 28, 2018, and the telecom tribunal announced an interim relief on October 1.
"The copy of the order passed by TDSAT on October 1, 2018, is, however, still awaited and expected shortly
"RCom, as duty bound, shall duly abide by such directions and orders as may be passed by the Supreme Court upon the matter being heard on October 4, 2018," the statement added.