Reliance Communications on Sunday said its lenders have rejected the resignation of chairman Anil Ambani and four other directors, and asked them to co-operate in the ongoing corporate insolvency resolution process.
Ambani along with four directors — Ryna Karani, Chhaya Virani, Manjari Kacker and Suresh Rangachar — had resigned from the company earlier this month.
In a BSE filing, R-Com said its committee of creditors (CoC) had met on November 20. “(The committee had) expressed a unanimous view that the resignations cannot be accepted,” it noted.
The filing further said: “It is being duly communicated to the aforesaid directors of R-Com that their resignations have not been accepted and they are advised to continue to perform their duties and responsibilities as the directors and provide all co-operation to the resolution professional in the corporate insolvency resolution process.”
R-Com had posted a consolidated loss of Rs 30,142 crore for the September 2019 quarter because of provisioning for liabilities after the Supreme Court’s ruling on statutory dues. R-Com’s was the second highest loss posted by any Indian corporate till date after Vodafone Idea Ltd’s Rs 50,921-crore loss.
During July-September 2019, R-Com had set aside Rs 28,314 crore on account of provisioning following the Supreme Court order on calculation of annual adjusted gross revenue (AGR) of telecom companies.
R-Com’s total liability includes Rs 23,327-crore licence fee and Rs 4,987-crore spectrum usage charges.
R-Com asset sale
Bharti Airtel, Reliance Industries and three others are likely to bid for the assets of debt-ridden Reliance Communications on Monday, according to sources close to the development.
The last date to submit the bids will end on Monday and R-Com’s committee of creditors will also meet on the same day to open the bids.
According to the sources, five bidders are expected to submit bids for R-Com assets on Monday. Reliance Industries will submit its bid through its subsidiary.
“Varde Partners, Bharti Airtel, Reliance Industries, UV Asset Reconstruction Company are among the main contenders,” sources said. PTI
