RCom gets NCLAT nod for tower, fibre assets sale; shares end 3% higher

Reliance Communications Ltd (RCom) said on Friday it received the National Company Law Appellate Tribunal’s (NCLAT) approval to proceed with the sale of its tower and fibre business.

The National Company Law Tribunal had prevented RCom from selling any asset without its permission, following a legal challenge from Swedish telecoms gear maker Ericsson, seeking payment of unpaid dues of Rs 11.55 billion ($177.7 million) by RCom and two of its units.

Proceeds of the sale will be deposited with state-run State Bank of India in an escrow account, RCom said in a statement.

India’s Supreme Court on Thursday lifted a high court stay on sale of some of the debt-laden company’s assets including spectrum and real estate, allowing its secured lenders to proceed with the sale.