RCom Insolvency: CoC expects to raise Rs 14,000 cr from assets

MUMBAI: The committee of collectors (CoC) overseeing the bankruptcy decision of Reliance Communications (RCom) expects to boost at the least Rs 14,000 crore from the sale of the telco’s property, together with spectrum, fibre and towers, based mostly on bids acquired, stated individuals with information of the matter.

“The final round of negotiations with the four bidders will start now since the deadline for resolution is January 10,” stated certainly one of them, a CoC member.

“The bids that have come in are good… the CoC expects to touch Rs 14,000 crore at least.”

At that degree, the haircut could be about 70% for monetary lenders which have filed claims of Rs 49,000 crore in opposition to RCom and its items Reliance Telecom and Reliance Infratel.

Assets up on the market embrace airwaves within the 850 MHz band in 14 of India’s 22 telecom circles, about 43,000 telecom towers, some fibre and knowledge centres. Bharti Airtel has made the very best bid of Rs 9,000 crore and has provided upfront cost however desires all of the property and never components of it, stated the individuals cited above. However, the CoC feels it is going to get higher worth by promoting the property individually.

“Jio interestingly has bid only for the tower and fibre assets with an upfront payment offer of Rs 3,600 crore,” one of many individuals stated. Private fairness fund Varde Partners and UV Asset Reconstruction Company Ltd (UVARCL) have stated they’ll decide up the property as a going concern and repay lenders as and after they handle to promote them.

“UVARCL has said they already have a spectrum sale deal worth Rs 11,000 crore,” stated the particular person.

There’s nothing to cease any telco, together with Reliance Jio Infocomm, from shopping for spectrum from the asset reconstruction firm at a later stage, he stated.

Airtel, Jio, UVARCL and RCom didn’t reply to queries. Varde declined to remark. A Deloitte spokesperson stated, “We are bound by confidentiality obligations and are unable to comment on client-specific matters.”

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