SBI board approves RCom insolvency resolution plan
New Delhi: The board of State Bank of India is learnt to have approved resolution plan for Reliance Communications, through which lenders are expected to recover around Rs 23,000 crore.
UV Asset Reconstruction Company is believed to have placed bid of around Rs 14,700 crore, while Reliance Jio has made an offer of Rs 4,700 crore for tower and fibre assets of Reliance Infratel Ltd. There will also be a clawback of Rs 4,300 crore of priority payments made to Chinese and Indian creditors.
Jio placed bid for tower and fibre assets of Reliance Infratel Ltd (RITL) and UVARC for assets of RCom and Reliance Telecom Ltd.
"SBI board has approved resolution plan for RCom. It is expected to vote favourably for the RCom resolution plan at the committee of creditors (COC) Meeting. Voting on the RCom Resolution Plan has started at the COC and will end on March 4," according to sources privy to the development. Email query sent to SBI and RCom resolution professional did not elicit any immediate reply.
RCom's secured debt is estimated to be around Rs 33,000 crore. Lenders submitted claims of around Rs 49,000 crore in August.