Releif for RCOM as CDB withdraws Insolvency petetion

Mumbai Jan 5: In a Major relief for RCom Company the China Development Bank (CDB) on Friday withdrew its insolvency filing against Reliance Communications.The company has said that"RCom's asset monetization plan is upto March 2018 and we are accommodating for the benefit of all creditors."

CDB added that "it retained the right to file an application again if it does not recover its Rs 11,460 crore dues from the Anil Ambani-led telco."

Earlier the CDB, which is RCOM's largest lender, had approached the National Company Law Tribunal (NCLT) last November against both RCom and its subsidiary Reliance Telecom in a bid to recover its dues.

Sources said that the bank had withdrawn its insolvency petition as the lenders had received some amount of the debt and is expected to receive the remaining until March.

Earlier the Reliance Company has announced that it would sell its towers, and other assets to reduce the debt below Rs 5000 crore. The Company owed Rs 45,000 cr debt to various lenders in October 2017.