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<ul><li>RCom asset sale which is currently underway will fetch as less as ₹10,000 crore</li><li>Banks and other creditors have claims worth ₹49,000 crore. </li><li>RCom has 43,000 telecom towers across the country, along with spectrum which will expire in 2021.</li></ul> Anil Ambani’s Reliance Communications (RCom) will leave its creditors<a href="https://telecom.economictimes.indiatimes.com/news/rcom-lenders-may-get-only-rs10k-cr-against-rs49k-cr-claims/70941928"> nearly empty handed</a>, according to a report from The Economic Times citing sources. The asset sale, which is currently underway, could fetch as little as ₹10,000 crore including the proceeds from the sale of spectrum and towers. Lenders have claimed ₹49,000 crore from RCom, of which nearly a third of the claims are from banks in China. The China Development Bank and Exim Bank have an exposure of ₹13,256 crore, combined while Standard Chartered Bank has a claim of ₹2,100 crore. Whereas, amongst its top Indian bankers are State Bank of India with an exposure of ₹4,800 crore, Bank of Baroda with ₹2,500 crore; Syndicate Bank with ₹1,225 crore and Punjab National Bank with ₹1,127crore. A valuable asset that RCom holds is the spectrum that it owns, which it will have to return to the government in 2021. The value of the spectrum will depend on how much time the successful bidder gets to use the airwaves, before the licence expires. If the bankruptcy resolution process is delayed, the idle 4G spectrum across 14 circles may lose value further. RCom has 43,000 telecom towers across the country, along with spectrum. Yet, it is not short of suitors. As per ET reports, Airtel is keen on buying its spectrum along with Reliance Jio which is owned by Anil Ambani’s brother Mukesh Ambani. Mukesh had<a href="https://www.businessinsider.in/mukesh-ambani-and-anil-ambani-may-restart-reliance-communications-deal-talks/articleshow/70253856.cms"> bid for and</a> inked a deal to acquire Anil’s telecom assets, but a lawsuit by its lender Ericsson stalled the deal. SEE ALSO <a href="https://www.businessinsider.in/the-difference-between-mukesh-ambanis-jio-and-ani-ambanis-reliance-communications/articleshow/70869465.cms">Mukesh Ambani's strategy with Reliance Jio is avoiding Anil Ambani's mistakes with RCom</a>

Chinese banks have a lot to lose as Anil Ambani’s RCom assets may be worth a quarter of the loans

The board of <keyword id="6354731" type="DOMAIN" weightage="20" keywordseo="state-bank-of-india">State Bank of India</keyword> is learnt to have approved resolution plan for <keyword id="46907" type="COMPANY" weightage="20" keywordseo="Reliance-communications">Reliance Communications</keyword>, through which lenders are expected to recover around ₹23,000 crore.UV Asset Reconstruction Company is believed to have placed bid of around Rs 14,700 crore, while Reliance Jio has made an offer of ₹4,700 crore for tower and fibre assets of <keyword id="44524" type="COMPANY" weightage="20" keywordseo="Reliance-Infratel">Reliance Infratel</keyword> Ltd. There will also be a clawback of ₹4,300 crore of priority payments made to Chinese and Indian creditors. Jio placed bid for tower and fibre assets of Reliance Infratel Ltd (RITL) and UVARC for assets of RCom and <keyword id="262352" type="COMPANY" weightage="20" keywordseo="Reliance-Telecom-Ltd">Reliance Telecom Ltd</keyword>. "SBI board has approved resolution plan for RCom. It is expected to vote favourably for the RCom resolution plan at the committee of creditors (COC) Meeting. Voting on the RCom Resolution Plan has started at the COC and will end on March 4," according to sources privy to the development. Email query sent to SBI and RCom resolution professional did not elicit any immediate reply. RCom's secured debt is estimated to be around Rs 33,000 crore. Lenders submitted claims of around ₹49,000 crore in August. Reliance Communications has put all of its assets on sale that include spectrum holding of 122 megahertz (MHz), tower business, optical fibre network and data centres. According to an order by the National Company Law Tribunal, the CoC had to complete the entire process by January 10 but it sought extension in deadline. The resolution professional, Deloitte, is expected to file resolution plan with the NCLT Mumbai on March 5. RCom in the past had tried to sell assets to various companies, including Reliance Jio, to clear debt but the deals did not materialise. Reliance Jio cancelled agreement to buy RCom assets, including spectrum, as it did not want to bear the past liabilities of the debt-ridden firm. Later, the insolvency proceedings against RCom started on a plea filed by Swedish telecom gear maker Ericsson after the company failed to clear its dues. PRS BAL

RCom's lenders are close to resolve the unpaid loans; to recover ₹23,000 crore

<ul><li><keyword id="15491" type="COMPANY" weightage="20" keywordseo="Airtel">Airtel</keyword> has made an upfront ₹9,500 crore offer for all of Rcomm’s assets.</li><li>Mukesh Ambani’s <keyword id="2003276" type="PERSON" weightage="20" keywordseo="Jio">Jio</keyword> has only offered a ₹3,600 crore cash payment.</li><li>But even the highest bid is still just one fourth of the company’s debt of ₹46,000 crore.</li></ul><keyword id="9171" type="PERSON" weightage="20" keywordseo="Anil-Ambani">Anil Ambani</keyword>’s <keyword id="46907" type="CITY" weightage="20" keywordseo="Reliance-communications">Reliance Communications</keyword> has received bids from Airtel, Jio and others for its assets. While that is good news for shareholders, the amounts they receive show that its many lenders might recover only a sliver of the massive ₹46,000 crore debt. The highest bid was by Bharti Airtel which made a ₹9,500 crore upfront offer, sources told <a href="https://www.livemint.com/industry/telecom/bharti-airtel-offers-highest-upfront-cash-for-rcom-assets-but-with-riders-11574922030448.html">Mint.</a> Meanwhile Anil Ambani’s elder brother Mukesh Ambani’s Jio has offered ₹3,600 crore as cash payment, but hasn’t bid on spectrum or real estate assets. The others who bid include UV Asset Reconstruction and US-based equity fund Varde Partners. Rcom’s assets include airwaves in 14 telecom circles, 43,000 telecom towers, licence for its 800 MHz 4G spectrum--that is set to expire in July 2021. RCom’s real estate assets are also up for offer. Lenders have been trying to sell all of its assets at one go, instead of auctioning each asset individually. Reliance Communications slipped into bankruptcy in May this year, after which resolution professionals took over the company. It had been losing customers for years before due to extreme competition and an excessive debt that ate into its equity value as well. It had tried to sell its assets to Jio earlier this year but it could not go through after Ericsson filed a case in courts on non-payment of <a href="https://www.businessinsider.in/anil-ambanis-rcom-could-get-refund-from-ericsson-says-india-court/articleshow/68794729.cms">dues</a>. See Also: <a href="https://www.businessinsider.in/stock-market/news/anil-ambanis-rcomm-and-rnel-stocks-gain/articleshow/72256319.cms">Two Anil Ambani Group stocks — which were trading for less than ₹1 — are buzzing again</a> <a href="https://www.businessinsider.in/anil-ambani-owned-rcom-assets-may-fetch-less-than-25-of-dues-to-chinese-banks/articleshow/70942671.cms">Chinese banks have a lot to lose as Anil Ambani’s RCom assets may be worth a quarter of the loans</a>

RCom lenders might recover just a fourth of their loans after asset sale

Mumbai, Jun 23 () Beleaguered businessman Anil Ambani on Tuesday claimed he had not given any personal guarantee for a borrowing made by Reliance Communications (RCom) from three Chinese banks against the backdrop of a UK court directing him to pay USD 717 million to the three lenders. He, however, seemed to indicate that he did give a personal guarantee to India's largest lender SBI, which has moved the the National Company Law Tribunal (NCLT) to recover Rs 1,200 crore. In both the cases -- SBI and Chinese banks -- the borrowings have been done by a group company and are not personal, he said. Speaking at the annual general meeting of group company Reliance Infrastructure (RInfra), Ambani said he had only signed "a power of attorney limited to executing a non-binding letter of comfort to the Chinese banks" when the now-bankrupt RCom borrowed money in 2012. "The guarantee on the basis of which the claim was made was admittedly not signed by him," a RInfra statement said quoting Ambani, who is the company's chairman. Ambani, who had to rely on help from elder brother Mukesh Ambani to pay Rs 462 crore to Ericsson for avoiding arrest in a different matter last year, would be availing legal remedies available in India to contest the claims by the Chinese banks, the RInfra statement said. An inability to personally deposit a sum of USD 100 million has shut out his defence in the UK courts, the statement added. "As per the UK Court's order, the final amount owed under the alleged guarantee will be assessed based on the outcome of the RCom insolvency resolution process," the statement quoted Anil Ambani as saying. The case relates to Industrial and Commercial Bank of China, China Development Bank and Exim Bank of China dragging Anil Ambani to a court in UK as part of their recovery efforts in the USD 925 million loan to RCom. On May 22 this year, a court had directed Ambani to pay up USD 717 million. Justice Nigel Teare at the Commercial Division of the High Court of England and Wales in London had ruled that a personal guarantee disputed by Anil Ambani is binding on him. On the case filed by SBI this month, Anil Ambani said the claim has arisen out of a guarantee given for a loan which was availed by RCom and Reliance Infratel Ltd (RITL) in 2016 to repay the Chinese banks and certain other Indian banks. Anil Ambani said he was defending himself against the claims by both SBI and the Chinese banks and "firmly believes that upon the resolution of RCom and RITL's debt as per their resolution plans filed before NCLT, a significant proportion, if not the whole, of the said debts will stand discharged and all these matters satisfactorily resolved," as per the statement. It can be noted that the NCLT is presiding over RCom's debt resolution case and according to reports, the 38 Indian lenders' haircut will stand at only 30 per cent of Rs 33,000 crore secured debt owed by the company, if a latest resolution plan goes through. Anil Ambani also told the shareholders that "his sole desire was to assist the RCom Group and not to make any personal gains" and assured that these legal battles would not have any bearing on RInfra's future prospects. AA RAM

RCom loans: Anil Ambani claims no personal guarantee given to three Chinese banks

New Delhi, Feb 23 () Reliance Communications (RCom) on Sunday said a meeting of the company's committee of creditors is scheduled to be held on Monday. "The 18th meeting of committee of creditors (CoC) of Reliance Communications Ltd is scheduled to be convened on Monday, February 24, 2020," RCom said in a regulatory filing. No other details were disclosed. According to sources, the CoC on Monday will put to a vote asset bids received from UV Asset Reconstruction Company and Reliance Jio from which lenders are expected to recover around Rs 23,000 crore. UV Asset Reconstruction Company is learnt to have placed a bid of around Rs 14,700 crore, while Reliance Jio has made an offer of Rs 4,700 crore for tower and fibre assets of Reliance Infratel Ltd. There will also be a clawback of Rs 4,300 crore of priority payments made to Chinese and Indian creditors. Jio placed bid for tower and fibre assets of Reliance Infratel Ltd (RITL) and UVARC for assets of RCom and Reliance Telecom Ltd. RCom's secured debt is estimated to be around Rs 33,000 crore. Lenders submitted claims of around Rs 49,000 crore in August. Reliance Communications has put all of its assets on sale that include spectrum holding of 122 megahertz (MHz), tower business, optical fibre network and data centres. According to an order by the National Company Law Tribunal, the CoC had to complete the entire process by January 10 but it sought extension in deadline. The resolution professional, Deloitte, is expected to file resolution plan with the NCLT Mumbai on March 5. RCom in the past had tried to sell assets to various companies, including Reliance Jio, to clear debt but the deals did not crystallise. Reliance Jio cancelled agreement to buy RCom assets, including spectrum, as it did not want to bear the past liabilities of the debt-ridden firm. Later, the insolvency proceedings against RCom started on a plea filed by Swedish telecom gear maker Ericsson after the company failed to clear its dues. SR PRS HRS

RCom's committee of creditors to meet on Monday

New Delhi, Jan 14 () Reliance Communications' (RCom) assets have received bids of around Rs 25,000 crore with Reliance Jio and UV Asset Reconstruction Company (UVARC) emerging as the top bidders in their respective segments, according to banking sources.
 "Jio and UVARC have emerged as the highest bidders at Rs 25,000 crore for RCom assets at committee of creditors (COC) meeting held on January 13, 2020," a source closely involved in the development told .
 Reliance Jio had placed Rs 4,700-crore bids for mobile tower and fibre assets of Reliance Infratel Ltd (RITL), a subsidiary of RCom.
 UVARC has placed bids of around Rs 16,000 crore for spectrum, real estate assets as well as the enterprise and data centre businesses held in RCom and Reliance Telecom Ltd (RTL).
 "The bidders have committed to pay 30 per cent of the proceeds of around Rs 7,500 crore within 90 days," the source said.
 With this, the 38 lenders of RCom would recover 75 per cent of the total outstanding of around Rs 33,000 crore. This is the highest-ever recovery of dues by financial creditors in the telecom sector that has seen the exit or shutdown of 9 out of 12 telecom companies since 2012, the source said.
 "In addition, the lenders will clawback the priority payments of around Rs 4,300 crore made to Chinese lenders (Rs 1,300 crore), Indian lenders (Rs 3,000 crore). Lenders will start recovering the monetisation proceeds starting March 2020," the source said.
 COC members will have to now obtain their respective board approvals so that they can put in final vote to approve the resolution plans on January 31 ahead of the NCLT filing due by February 3. PRS HRS

Jio, UVARC emerge top bidders for RCom assets

New Delhi, Feb 17 () The Committee of Creditors of Reliance Communications on February 24 will put to a vote asset bids received from UV Asset Reconstruction Company and Reliance Jio from which lenders are expected to recover around Rs 23,000 crore, according to sources privy to the development. UV Asset Reconstruction Company is learnt to have placed a bid of around Rs 14,700 crore while Reliance Jio has made an offer of Rs 4,700 crore for tower and fibre assets of Reliance Infratel Ltd. There will also be claw back of Rs 4,300 crore of priority payments made to Chinese and Indian creditors. "With this resolution plan, the 38 lenders of RCom will recover over 70 per cent of their outstanding of about Rs 33,000 crore. In the case of Bhushan Steel and Essar Steel, the recovery to lenders was 63 per cent and 60 per cent, respectively, as per the IBBI website," the source said. "Loans of Chinese lenders to reduce by nearly 65 per cent i.e. by Rs 8,000 crore from about Rs 12,000 crore to around Rs 4,000 crore," a banking source aware of the process said. Jio placed bid for tower and fibre assets of Reliance Infratel Ltd. (RITL) and UVARC for assets of RCom and Reliance Telecom Ltd. RCom's secured debt is estimated to be around Rs 33,000 crore. Lenders submitted claims of around Rs 49,000 crore in August. RCom has put all of its assets on sale which include spectrum holding of 122 MHz, tower business, optical fibre network and data centres. "The bidders have committed to pay 30 per cent of the proceeds of around Rs 7,500 crore within 90 days," the source said. As per the NCLT order, the CoC had to complete the entire process by January 10 but it sought extension in deadline. The Resolution Professional (RP), Deloitte, is expected to file resolution plan with the NCLT Mumbai on March 5. RCom in the past had tried to sell assets to various companies, including Reliance Jio, to clear debt but the deals did not crystallise. Reliance Jio cancelled agreement to buy RCom assets, including spectrum, as it did not want to bear the past liabilities of the debt-ridden firm. Later, the insolvency proceedings against RCom started on a plea filed by Swedish telecom gear maker Ericsson after the company failed to clear its dues. PRS MRMR

RCom CoC to vote on Rs 23,000 cr resolution plans on Feb 24

New Delhi, Mar 4 () Reliance Communications' Committee of Creditors is believed to have approved insolvency resolution plan that will fetch lenders Rs 23,000 crore by selling its assets to Reliance Jio and UVARCL.Under the plan, 38 lenders of RCom can recover over 70 per cent of their outstanding of Rs 33,000 crore secured debt, an industry source aware of the development told ."The committee of creditors (COC) has approved the resolution plans of RCOM and its subsidiaries RTL and RITL with an absolute majority of 100 per cent by the lenders at the COC meeting, as against the mandatory requirement of 66 per cent," the source said.Lenders submitted claims of around Rs 49,000 crore in August of which Rs 33,000 crore estimated to be secured debt.Reliance Jio and UV Asset Reconstruction Company Limited were the highest bidders for RCOM assets at the CoC meeting held on January 13, 2019.Jio had placed bid of around Rs 4,700 crore for the tower and fiber assets of Reliance Infratel Ltd (RITL), while UVARCL has made an offer of Rs 14,000 crore for spectrum, real estate assets, enterprise and datacenter businesses, held by RCom and Reliance Telecom Ltd.In addition, the creditors will clawback the priority payments of Rs 4,300 crore made to Chinese (Rs 1,300 crore) and Indian lenders (Rs 3,000 crore)."Loans of Chinese lenders will reduce by nearly 65 per cent to around Rs 4,000 crore from around Rs 12,000 crore. This is the highest-ever recovery of dues by financial creditors in the telecom sector, which has seen the exit or shut down of 11 out of 12 telcos since 2012," the source claimed.According to the Insolvency and Bankruptcy Board of India, the recovery to lenders in the case of Bhushan Steel and Essar Steel were 63 per cent and 60 per cent, respectively."The bidders have committed to pay 30 per cent of the proceeds of around Rs 7,500 crore within 90 days," the source said.The resolution professional has to submit the plan before the National Company Law Tribunal (NCLT) on Thursday. PRS BAL

'RCom creditors approve Rs 23,000 cr asset sale plan to Jio, UVARCL'

New Delhi, Dec 16 () UK High Court has dismissed a USD 680 million claim application filed by Chinese banks against Reliance Communications Chairman Anil Ambani, a spokesperson of Ambani said on Moday.
The hearing in the matter took place on November 7 and the order was issued on Monday, the spokesperson said in a statement. 
UK High Court has dismissed "summary judgement application of Chinese banks against Anil Ambani" in which the "Chinese banks had claimed USD 680 million from Mr. Ambani against Chinese banks' corporate loans to Reliance Communications Limited (RCom)", it said.
"Mr Ambani's position that the claim made by Chinese banks in relation to his alleged guarantee for corporate loans availed by Reliance Communications Limited (RCom) could not be granted by way of a summary judgement has been duly upheld by the UK High Court," the spokesperson said. 
At this stage of the proceedings, the evidence of the personnel of RCom who were dealing with the personnel of the Chinese banks could not be placed, which led to certain doubts being expressed in the judgement on account of the evidence being incomplete and thus appearing implausible. 
Ambani contested the proceedings and put up a strong legal defence, and will continue to contest the proceedings and seek leave to defend, without any conditions as to making of deposits or payments being imposed, the statement said.
"Mr Ambani is confident that he will have an opportunity to place the necessary evidence before the UK High Court, in the course of the trial to establish that Chinese banks claim are without any merit," the statement said. 
The spokesperson said that Ambani is confident that his position would be fully vindicated once all the facts and the entire evidence is before the Court.
RCom is currently undergoing through insolvency proceedings following a plea filed by Swedish telecom gear maker Ericsson after the company failed to clear its dues.
RCom's secured debt is estimated to be around Rs 33,000 crore. Lenders have submitted claims of around Rs 49,000 crore in August.
Bharti Airtel, Reliance Jio, Varde Capital and UV Asset Reconstruction Company have submitted bids to buy assets of debt-ridden Reliance Communications. PRS MR
MR

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Chinese banks have a lot to lose as Anil Ambani’s RCom assets may be worth a quarter of the loans

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RCom's lenders are close to resolve the unpaid loans; to recover ₹23,000 crore

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RCom lenders might recover just a fourth of their loans after asset sale

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RCom loans: Anil Ambani claims no personal guarantee given to three Chinese banks

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RCom's committee of creditors to meet on Monday

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RCom CoC to vote on Rs 23,000 cr resolution plans on Feb 24

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