NCLT initiates insolvency proceedings against Reliance Communications Infrastructure

NEW DELHI: The National Company Law Tribunal (NCLT)-Mumbai has initiated corporate insolvency resolution process against Reliance Communications Infrastructure (RCIL) under Section 7 read with Rule 4 of the Insolvency and Bankruptcy Code 2016.

According to the State Bank of India’s (SBI) plea, the company committed default to the extent of Rs 3,730.40 crore including interest, as a guarantor of the loan facilities sanctioned by them to Reliance Communications (RCOM), Reliance Telecom (RTL) and Reliance Infratel (RITL).

SBI further said that it sanctioned Rupee Term Loan of Rs 1,500 crore to RCOM and Rs 125 crore to RTL. In 2015 a Rupee Loan Facility Agreement was entered into between the Principal Borrowers and Obligors, SBI and rupee lenders viz.