Pointers at Glance
- RCom fails to attract buyers for its non-core assets in the insolvency proceedings.
- The assets included land in Pune (871.1 sq meters) & Chennai (3.44 acres), Office spaces at Haddows Road in Chennai & Bhubaneswar, and Shares of Campion Properties Limited & Reliance Realty.
Bankrupt telco Reliance Communications, which is currently undergoing insolvency proceedings, has failed to draw any buyers for its non-core assets that were placed on sale earlier this year.
In March, RCom informed the Bombay Stock Exchange that the committee of creditors had authorized the sale of its few non-core assets through its appointed resolution professional. The expression of interest was invited by April 17.
The properties included land in Pune (871.1 sq meters) & Chennai (3.44 acres), Office spaces at Haddows Road in Chennai & Bhubaneswar, and Shares of Campion Properties Limited & Reliance Realty.
However, RCom failed to draw interest among buyers, resulting in the deadline extension for submitting interest to bid multiple times, the latest being June 27. The recent sources reveal that, once again, there have been no takers for these properties. There is no clarity on the next steps of RCom.
It was about to approach the National Company Law Tribunal (NCLT) to get the sale approval on the mentioned assets on July 20, but with no interested parties.
Mails delivered to resolution professional Anish Nanavaty did not elicit any response until press time. Experts believe the lack of interest in these assets up for sale could be due to the uncertainty on what these properties would be related or attached to and the fact that it is subject to NCLT approval.
The sources show that the company proposed to sell its enterprise business too. Reliance Group’s IoT (Internet of Things) Business – Unlimit, set up in late 2016 in partnership with Cisco Jasper, shut shop last year. Its Chief Executive, Juergen Hase, left the company in January 2021 after his contract expired. It is the latest impediment faced during the corporate insolvency resolution process that RCom is undergoing.
One of the main assets in the process is the spectrum owned by RCom, but the Department of Telecommunications has argued that it cannot be sold as a part of insolvency proceedings as it is the national source. In addition, the license of the company expired last year.
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