Jio Wants To Deposit Rs. 3,720 Crore to acquire Reliance Infratel Assets
Telecom operator Jio has proposed to deposit Rs 3,720 crore in an escrow account to complete the acquisition of Reliance Infratel which is undergoing a foreclosure process.
Billionaire Mukesh Dhirubhai Ambani-run Jio bid for Rs 3,720 crore in November 2019 to acquire the tower and fiber assets of his younger brother Anil Ambani’s credit-owned subsidiary Reliance Communications.
Jio’s subsidiary Reliance Projects and Property Management Services in a petition before the NCLT last month said the company is committed and willing to implement the resolution plan of Reliance Infratel, which was approved by the committee of creditors earlier.
Jio said that the delay in the acquisition of assets of RITL (Reliance Infratel) due to disputes between creditors will reduce the value of the assets.
“In order to avoid further delay, the petitioner proposes to deposit the sum of the judgment amount in the account of the State Bank of India as directed by this honorable bench by the order approving the scheme,” Jio said in a new petition before the NCLT Mumbai. .
RITL has fiber assets of 1.78 lakh route kilometers and 43,540 mobile towers across the country.
RITL is the company that manages RCOM’s tower and fiber assets.
Reliance Project & Property Management Services Limited, a subsidiary of Jio, and the successful applicant for the RITL solution, submitted a new application to the NCLT Mumbai to complete the acquisition process.
The funds will be distributed to the creditors once the dispute between the creditors regarding the distribution of the settlement funds has been resolved between the creditors.
SBI and several other banks, including Doha Bank, Standard Chartered Bank, and Emirates Bank, are in a legal dispute over the distribution of funds. The matter is before the High Court.
Doha Bank challenged the classification of claims against RITL’s indirect creditors, such as financial creditors, by the adjudicator.