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The National Company Law Tribunal (NCLT) on Monday granted Jio its approval to acquire Reliance Infratel (RITL).
The court asked Jio to deposit Rs 3,720 crore in State Bank of India (SBI) Escrow account to complete the acquisition RCOM’s Tower and fiber assets.
On November 6th Geo Proposed to deposit Rs. 3,720 crore into an escrow account to complete the takeover of Reliance Infratel which is undergoing bankruptcy settlement process.
Billionaire Mukesh Dhirubhai Ambani made a bid of Rs 3,720 crore in November 2019 for a tower and a fiber asset for a debt-laden subsidiary of his younger brother Anil Ambani that he runs. Reliance Communications.
The creditors committee has already approved the settlement plan by Jio on March 4, 2020 with a vote of 100 percent.
According to a request conveyed by Reliance Projects and Property Management Services, a subsidiary of Jio, due to the delay in the procedures on the distribution of the amount and the issuance of the “No Due” certificate, the implementation of the settlement plan has been delayed.
“This delay causes serious harm to the interest of the debtor company (Reliance Infratel) as well as the applicant (Jio),” it filed before the NCLT last month.
Geo said the delay in the acquisition RITL Assets due to disputes between creditors will deteriorate the value of assets.
RITL has fiber assets of approximately 1.78 kilometers of road and 43,540 mobile towers across the country.
RITL is the holding company for RCOM’s tower and fiber assets.
Reliance Project & Property Management Services Limited, the successful solution applicant for Reliance Infratel (RITL), has moved a new application at NCLT Mumbai to complete the acquisition.
The money will be distributed among the lenders once the dispute between the creditors over the distribution of the settlement funds is settled.
SBI and a few other banks, including Doha Bank, Standard Chartered Bank and Emirates Bank, are locked in a legal battle over the distribution of funds.
The case is still pending before the Supreme Court.
Doha Bank challenged the classification of claims from RITL’s indirect creditors as financial creditors by the settlement expert.
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