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We have biggest disconnect between stock, economy

The nation’s shares have logged the one of the best rebounds from the March lows globally while battling some of the world’s worst eco ...
The Economic Times
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| 05 August, 2020, 06:35 PM IST | E-Paper
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    SEARCHED FOR:AIRCEL

    Supreme Court wants all information on RCom, Sistema, Aircel & Videocon bankruptcy cases

    “We need to ensure that the IBC is not being misused by companies to escape liabilities,” a three-judge bench headed by Justice Arun Mishra said on Monday.

    Reliance Comm liable to pay SSTL AGR dues, DoT identifies combined liability worth more than Rs 25k cr

    ​​In February 2019, RCom filed for ins...

    UVARCL expects demand for Aircel spectrum

    Ritesh Aggarwal, the chief financial officer told ET that valuation of airwaves and other assets wo...

    • According to people aware of the developments, NCLAT overturning National Company Law Tribunal's order will be a setback to Airtel , which may now take the matter to Supreme Court.

      Asset reconstruction firm UVARCL was the shortlisted buyer for Aircel's assets and according to people aware, NCLT's Mumbai bench approved the plan but with some modifications. Aircel, which declared bankruptcy in March 2018, for failing to repay debt of Rs 20,000 crore had received claims worth Rs 20,000 crore from lenders and a claim for a similar amount from operational creditors.

      Reviving the business of the company to your previous level seems almost impossible. There were 75 million subscribers in Aircel, who have given up your connection and to restart the telecom services, a huge amount of capital is required. The environment is also not conducive, because the existing players are also struggling.

      As per the NCLT order dated June 9 but made public Thursday, the amount translates into an 89% haircut for lenders who had made claims worth Rs 58,760 crore for the telco's outstanding loan amount. Lenders to Aircel and its units Dishnet Wireless and Aircel Cellular include State Bank of India, Bank of Baroda, Punjab National Bank, China Development Bank Corp. and Canara Bank.

      According to legal sources, the telecom regulator has filed an application for RCom and Reliance Telecom seeking that provision be made in resolution plan that post paid subscribers get back their unspent money and deposits . Axis Bank also raised a question on its guarantees but both these matters will be heard on August 19 by NCLT.

      Amid rising speculations around RCom's final fate, UVARCL has generated a lot of interest in industry and media circles.

      The National Company Law Tribunal (NCLT) will decide on August 5 if UV Asset Resolution Co Ltd (UVARCL) and Reliance Jio Infocomm (Jio) are the buyers of RCom’s assets . The two firms have been overwhelmingly voted in favour of the resolution plans submitted by UVARCL and Jio by RCom’s lenders .

      Sunil Bharti Mittal, chairman of Bharti Airtel, has called upon the government to review the high taxes levied upon the telecom sector. The industry leader has asked the government to ensure that the sector aids in growth and development but not at its own cost.

      In the resolution plan mentioned in National Company Law Tribunal ( NCLT) on Monday, this realisation will happen when UVARCL manages to sell Aircel’s assets. There will be no upfront payment made to the lenders but they will get zero optionally convertible debentures spread over a period of 5 years.

      The DoT’s plan comes after an appellate tribunal dismissed its plea contesting an earlier order declaring that Aircel’s spectrum and licence cannot be taken away while it undergoes insolvency, according to people aware of the matter.

      In the resolution plan mentioned in National Company Law Tribunal on Monday, this realisation of Rs 6,600 crore will happen when UVARCL manages to sell Aircel’s assets. There will be no upfront payment made to the lenders but they will get zero optionally convertible debentures spread over a period of five years.

      “Heard parties on liability and timeframe for making the payment. While hearing the matter, attempts were made to wriggle out of the liability like asking for reassessment and recalculations,” a three-judge bench headed by Justice Arun Mishra said. “Second innings being played”

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