The company also plans to sell most of its wireless assets to Reliance Jio - controlled by the country's richest man and Anil's elder brother Mukesh Ambani - in a deal sources said was worth about $3.8 billion. At 12:21 pm, the stock was down 17.67% to 10.25 level on BSE.
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.
The battle is for the repayment of Rs 1,155 crore of dues, which Ericsson alleges that RCom owes it for managing and operating the former's telecom network in a seven-year agreement that both the companies had inked in 2014. The company is set to report earning for the quarter ended March on May 19.
RCom can appeal the verdict with a tribunal in New Delhi.
Meanwhile, RCom clarified after market hours yesterday, 15 May 2018, that the company and two of its subsidiaries Reliance Telecom and Reliance Infratel, await the detailed orders of the National Company Law Tribunal (NCLT), Mumbai, allowing the Ericsson application for admitting the companies to debt resolution under IBC. The move made RCom the second operator, after Aircel, to be hauled through bankruptcy proceedings. If the company is sold under the insolvency process, Jio might have to clear a legal hurdle to bid for RCom. The rule is aimed at blocking back-door entry by delinquent owners.
Jio has tower, fibre and airwaves sharing pacts with RCom and could suffer some loss of competitiveness if a rival were to secure the beleaguered operators' assets.
RCom is the second-largest listed company by assets in Anil Ambani's business empire.
Weakness was also seen in other group stocks, with Reliance Naval and Engineering falling by 6.96 per cent, Reliance Nippon Life Asset Management 2.46 per cent, Reliance Power 0.45 per cent and Reliance Infrastructure 0.45 per cent on BSE.
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