RCom Unlikely to reach a settlement

New Delhi: Reliance Communications (RCom) on Friday said that it was in advanced talks with Ericsson to resolve “commercial issues” to exit the bankruptcy proceedings.

Earlier this week, the NCLT in Mumbai admitted an insolvency petition filed by Swedish firm Ericsson against RCom and two of its subsidiaries seeking to recover Rs 1,150 crore. This has derailed RCom’s plan to sell assets to Reliance Jio.

However, a news agency report quoting sources said that it is uncertain if the firms’ discussions over dues would lead to an out-of-court settlement because of lack of clarity.

“We confirm that RCom and Ericsson are at an advanced stage of discussions to expeditiously resolve commercial issues. This will enable Reliance Communications to exit the NCLT process,” said RCom.