Anil Ambani’s RCom insolvency can resume; NCLAT allows lifting moratorium

After two years of wait, Reliance Communications can now finally proceed with insolvency, as the National Company Law Appellate Tribunal approved its application for lifting the moratorium on insolvency and bankruptcy proceedings on the Anil Ambani-led company, a person close to the development told Financial Express Online. However, the NCLAT has also directed that the moratorium for RCom’s assets is to be maintained.

RCom had moved the NCLAT on 4 February 2019 to withdraw its earlier appeal of stay on the proceedings for insolvency so that it can move ahead with the resolution plan through NCLT, the company had earlier announced. RCom’s operational creditor — Ericsson — who was the first creditor to move the court for RCom insolvency was also asked to file its reply to the court by 8 February 2019.