Stock Market

Faced with bankruptcy proceedings, beleaguered firm Reliance Communications plunged as much as 9.63 per cent early on Wednesday.An insolvency tribunal ordered bankruptcy action against the company on a petition filed by Ericsson.
This is something that could scupper the Anil Ambani owned telcos Rs 18,000-crore deal to reduce debt by selling its wireless assets to Reliance Jio Infocomm.
The Mumbai bench of the National Company Law Tribunal on Tuesday admitted three petitions filed against the telco and its subsidiaries by Swedish telecom equipment maker Ericsson under the Insolvency and Bankruptcy Code.
RCom, once Indias second-largest mobile phone operator, now becomes the second operator -- after Aircel -- to be hauled through bankruptcy procedure.RCom is likely to move the National Company Law Appellate Tribunal against the NCLT order as early as Wednesday, according to ET.
The full order on the matter, where Ericsson wants to recover Rs 1,150 crore in dues, is expected to be released on Wednesday.RCom saddled with Rs 46,000 crore of debt was unable to survive the intense competition in the Indian telecom market, especially after the entry of Jio.
It was forced to shut wireless operations in late 2017, after a merger attempt with Aircel fell through, mainly due to legal hurdles.
It signed a pact with Jio in late December to sell its spectrum, towers, fibre and switching nodes to repay lenders, a deal thats now in jeopardy.This apart, Sistema Shyam Teleservices (SSTL) on Tuesday offloaded over 1.5 crore shares of debt-ridden Reliance Communications, lowering its holding to 4.43 per cent.After falling over 9 per cent in early session, the scrip wiped off some of its losses and was trading 7.23 per cent down at Rs 11.55 at around 9.33 am.
Benchmark BSE Sensex was down 216 points, or 0.61 per cent, at 35,327.32 at around the same time.





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