Indian operator RCom (Reliance Communications) has agreed to pay INR5.5 billion ($81.3 million) to Ericsson to settle its debt to the Swedish firm.
With both firms filing offers for a settlement yesterday (30th May), India’s National Company Law Appellate Tribunal has now halted the bankruptcy proceedings initiated in mid-May following an order from the National Company Law Tribunal (NCLT).
Ericsson was demanding a repayment of nearly INR10 billion, although following protracted negotiations the Swedish vendor has now dramatically cut the repayment that it will require for the debt to be settled.
The resolution of the longstanding dispute over its debt to Ericsson was not the only good news for RCom – its tower arm Reliance Infratel has reached an agreement with its minority shareholders to sell some of its fibre and tower assets for INR2.32 billion.
Additionally, now that both of these issues have been settled RCom will be able to proceed with selling its wireless assets to Reliance Jio as it winds down its mobile operations in India. The asset sale will allow it to pay back its creditors to alleviate its debt.