RCom assets attract bids from Jio

RCom assets attract bids from Jio

After shuttering its Indian operations in 2017, RCom (Reliance Communications)’s attempts to sell off its assets in order to recoup some of its liabilities are proving fruitful.

A recent meeting of RCom’s creditors revealed that the operator has been offered a total of INR250 billion ($3.5 billion) for its various assets, including INR47 billion from Reliance Jio for the tower and fibre infrastructure operated by Reliance Infratel, and INR160 billion from UV Asset Reconstruction Company for spectrum, real estate, and data centres.

RCom began insolvency proceedings in February 2019 after several abortive attempts at selling off assets to generate funds. In late 2018, the Department of Telecommunication (DoT) quashed a much-anticipated spectrum trading agreement between RCom and Jio, claiming that it contravened established frameworks.

However, relief could be in sight. The Economic Times reported that if the newly-announced deals are closed, they would account for 75% of RCom’s total debt.

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