Jio, UV emerge top bidders for Rcom’s tower, fibre assets
NEWDELHI: UV Asset Reconstruction Co. (UV ARC) and Reliance Jio have emerged as highest bidders in the asset sale process of the debt-ridden Reliance Communications, from which lenders expect to recover ₹25,000 crore, according to banking officials aware of the matter.
Reliance Jio has placed bids of ₹4,700 crore for the mobile tower and fibre assets of Reliance Infratel Ltd (RITL), a subsidiary of Rcom.
UV ARC has placed bids of around ₹16,000 crore for spectrum, real estate assets as well as the enterprise and data centre businesses held in Rcom and Reliance Telecom Ltd (RTL).
“Jio and UVARC have emerged as the highest bidders at ₹25,000 crore for Rcom assets at committee of creditors (COC) meeting held on January 13, 2020,” a person closely involved in the development told PTI.
Bharti Airtel and Varde Capital were also in the fray for Rcom assets.
“In addition, the lenders will clawback the priority payments of around ₹4,300 crore made to Chinese lenders (₹1,300 crore), Indian lenders (₹3,000 crore). Lenders will start recovering the monetisation proceeds starting March 2020,” the person said.
Rcom’s secured debt is estimated to be around ₹33,000 crore.
Lenders have submitted claims of around ₹ 4 9 , 00 0 c r ore i n August.
With this, the 38 secured lenders of Rcom would recover 75 per cent of the total outstanding of around ₹33,000 crore.
This is the highest-ever recovery of dues by financial creditors in the telecom sector that has seen the exit or shutdown of 9 out of 12 telecom companies since 2012, the source said.
The bidders have committed to pay 30% of the proceeds of around ₹7,500 crore within 90 days, the source said.
The members of the committee of creditors will have to now obtain their respective board approvals so that they can put in final vote to approve the resolution plans on January 31 ahead of the national Company Law Tribunal filing due by February 3.