RCom in danger of landing back in insolvency

NEW DELHI: An appellate tribunal has warned lenders to Reliance Communications (RComNSE -0.98 %) that their failure to release tax refunds to clear the telco’s dues may force the court to send the operator back into insolvency proceedings.

“If you don’t pay we will vacate the order (staying insolvency proceedings) and ask for insolvency,” National Company Law Appellate Tribunal (NCLAT) said on Tuesday. “If the payment fails we will pass orders for insolvency,” said a two-member bench headed by Justice SJ Mukhopadhyaya. The tribunal will hear the case on Wednesday.

The court’s comments come on the back of RCom’s request that Rs 260 crore of tax refunds held in a trust fund by lenders be released on behalf of the telco to pay Swedish telecom gear maker Ericsson.