Ericsson files insolvency petition against RCom
13 Sept 2017 11:18 PM IST
MUMBAI: Ericsson's Indian subsidiary has filed insolvency petitions against Reliance Communications and two of its companies to recover unpaid dues, the Indian mobile operator said in a stock exchange filing on Wednesday.
The Swedish telecoms equipment maker, which signed a seven-year deal in 2014 to operate and manage Reliance Communications' nationwide network, is seeking a total of 11.55 billion rupees ($180 million) from the three companies, the filing said. Reliance Communications said it planned to challenge the insolvency petitions. The filing said the Ericsson case would go before the National Company Law Tribunal, the designated court for bankruptcy cases in India, on September 26.
"Ericsson has done this as a last resort in order to resolve an issue regarding debt that Reliance owes to Ericsson for services provided under a contract. As the legal process is ongoing, we don't have any further comments at this point," the Swedish company said. The petitions come as the Indian phone company races against time to seal deals to sell a stake in its tower assets to Canada's Brookfield and to merge its mobile services business with Aircel.
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