RCom insolvency: Lenders approve Rs 23,000 cr resolution plan; Chinese banks to get major share

New Delhi: With lenders approving a Rs 23,000 crore resolution plan for Reliance Communication, as much as Rs 5,500 crore will flow to Chinese banks, clearing about 55 percent of their principal dues, including of those lenders to whom firm’s promoter Anil Ambani had allegedly given a personal guarantee. In a regulatory filing, RCom said “that in the e-voting conducted pursuant to the meeting of the committee of creditors held on March 2, 2020, which e-voting concluded on March 4, 2020 at 8 pm, the committee of creditors of RCOM has, by way of voting share of 100 percent of the committee of creditors, approved the resolution plan submitted by UV Asset Reconstruction Company Limited. “Further, in respect of the subsidiaries of RCOM, i e, Reliance Telecom Limited and Reliance Infratel Limited, which are also undergoing corporate insolvency resolution process under the provisions of the Code, resolution plans submitted by UV Asset Reconstruction Company Limited, and Reliance Digital Platform & Project Services Limited through its division Infrastructure Projects respectively, have been approved by the committee of creditors of each of the aforesaid companies by 100 percent voting share,” it said. After considering a clawback clause, the resolution plan fetched Rs 23,000 crore, which will go towards paying dues of Chinese banks, who are the largest lenders, they said, adding Chinese banks will receive Rs 5,500 crore and their principal debt would stand reduced to Rs 4,500 crore.