RCom subsidiary files bankruptcy protection without prior consent

Update: 2019-09-18 17:10 GMT

New Delhi: Debt-ridden telecom firm Reliance Communications on Wednesday said its subsidiary GCX filed for bankruptcy protection in the US without any prior consent of the company. The B2B arm of RCom, GCX has voluntarily filed for bankruptcy protection under chapter 11 of the United States bankruptcy code last week, as per a regulatory filing. "Kindly note that while there was financial stress in GCX, however, the decision to file for bankruptcy protection under chapter 11 of the United States Bankruptcy Code has been made by the management of GCX without any prior consent of the Company," RCom said in the filing. GCX on September 15 announced that it has initiated a voluntary case under Chapter 11 of the United States Bankruptcy Code to effectuate the plan while continuing to serve its customers as usual. 

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