RCom to begin insolvency process

Insolvency proceedings against Reliance Communications (RCom) are set to begin, following the debt-laden telco’s inability to carry through the Rs. 25,000-crore deal between the Ambani brothers. The National Company Law Appellate Tribunal (NCLAT), on Tuesday approved RCom’s application for lifting the moratorium on insolvency and bankruptcy, and directed that the moratorium on RCom’s assets be maintained.

RCom has moved insolvency proceedings in the Mumbai bench of the National Company Law Tribunal (NCLT), which will hear the case on May 7.

The IBC process will begin with the appointment of an Insolvency Resolution Professional, a source in the know of the development told The Hindu . RCom had moved the NCLAT on February 4, 2019 to withdraw its earlier appeal of stay on the proceedings for insolvency so that it could move ahead with the resolution plan through the NCLT process.