Swedish telecom giant Ericsson has rejected two proposals made by India's Reliance Communications Ltd. to settle an eight-month-old dispute over dues outside the purview of Indian insolvency tribunal, the National Company Law Tribunal, The Economic Times (India) reported May 26, quoting people familiar with the matter.
RCom had offered either a guarantee of payment by an Anil Ambani-controlled company or an undertaking signed by the directors of the troubled telco and its arms, Reliance Infratel Ltd. and Reliance Telecom Ltd., stating Ericsson's dues would be paid within 15 days of its withdrawal of the insolvency petition.
Ericsson had filed three petitions, all of which were admitted by the Mumbai bench of the National Company Law Tribunal on May 16, in a bid to draw RCom into insolvency and bankruptcy proceedings to recover pending dues of 10 billion Indian rupees.
RCom and its subsidiaries had also filed pleas in an appellate tribunal to stop insolvency proceedings against them arguing that Ericsson was an operational creditor. Ericsson's move to drag RCom to NCLT has put on hold RCom's plan to trim debt worth 460 billion Indian rupees by selling some assets to big brother Mukesh Ambani-owned Reliance Jio.
NCLT-appointed interim resolution professionals for Reliance Infratel and Reliance Telecom have also sought details of dues from creditors.
As of May 25, US$1 is equivalent to 67.80 Indian rupees.
