MUMBAI : A proposal by lenders to Reliance Communications Ltd (RCom) to seek fresh bids despite selecting UV Asset Reconstruction Co. Ltd’s (UVARCL) resolution plan could lead to prolonged litigation, said three legal experts. Last year, a resolution plan by UVARCL was selected for RCom’s spectrum and other assets, while Reliance Jio’s plan was selected for RCom’s tower assets. There have been cases wherein due to the failure or withdrawal of a resolution plan, the committee of creditors (CoC) has sought fresh bids, Pyasi said. Last year, RBI had rejected UVARCL’s resolution plan to acquire the assets of Aircel, saying the plan did not fulfil guidelines of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (Sarfaesi) Act. If the resolution plan as approved is incapable of being implemented, the CoC may be required to seek further directions from the NCLT in this regard," said Faisal Sherwani, partner, L&L Partners.

Source: Mint July 11, 2021 17:58 UTC