SBI-led lenders move SC for sale of RCom’s assets

State Bank of India (SBI)-led lenders forum overlooking the asset monetisation of Reliance Communications (Rcom), has moved Supreme Court after the Bombay High Court dismissed Rcom’s appeal against an arbitration tribunal ruling to bar the sale or transfer of its assets without prior permission.

“Secured creditors have the first right over sale of assets,” said a senior executive at SBI who did not want to be named. The Supreme Court will hear the matter on Thursday.

Anil Ambani-owned Rcom too had moved SC last week against Bombay High Court’s order. The telco is rushing against time to close the sale of most of its wireless assets to Mukesh Ambani owned Reliance Jio Infocomm (Jio) by March end, to avoid landing in the bankruptcy court.

The company and its two units is sitting on Rs 45,000 crore of debt and desperately want to close the Jio deal valued at around Rs25,000 crore and pay a part of the loan.

But the tribunal’s order on arbitration initiated by telecom equipment maker Ericsson over unpaid bills, and the high court’s refusal to scrap that has made it a difficult task.

RCom’s stance in the case is that secured creditors, such as banks, rank above unsecured vendors like equipment supplier like Ericsson in any debt resolution plan.

The Anil Ambani-led telco had signed the deal in late December to sell its spectrum, fibre, towers and switching nodes to Jio.