Shares of Reliance Communications slipped nearly 18 percent intraday Wednesday as NCLT admitted an insolvency petition filed by Ericsson against the company.
The National Company Law Tribunal (NCLT) has admitted an insolvency petition filed by Swedish communications equipment major Ericsson against Anil Ambani-run Reliance Communications and two of its subsidiaries seeking to recover Rs 1,150 crore.
Ericsson had signed a seven-year deal in 2014 to operate and manage RCom’s nationwide telecom network but has not been paid the bill.
Last September, the Swedish company had filed a petition in the NCLT’s Mumbai bench seeking liquidation of the telecom operator to recover Rs 1,150 crore that RCom owes it.
The tribunal admitted the petition which could potentially result in delaying RCom’s plans to sell assets to lighten its debt load.
The company has postponed its board meeting scheduled to be held on May 15 to May 19, 2018 to approve audited financial results for the quarter and year ended March 31, 2018.
Sistema Shyam Teleservices offloaded over 1.5 crore shares of the company, lowering its holding to 4.43 percent.
At 11:09 hrs Reliance Communications was quoting at Rs 10.60, down Rs 1.85, or 14.86 percent on the BSE.
With inputs from PTI