Information technology major Tech Mahindra has filed three cases against Reliance Communications and two of its subsidiaries in the National Company Law Tribunal (NCLT) under the Insolvency and Bankruptcy Code (IBC), Mint reported on Friday.
The petitions are yet to be admitted and the cases will be heard on October 9. According to copies of the petitions reviewed by the newspaper, Reliance Communications and its two subsidiaries Reliance Telecom and Reliance Big TV owe Tech Mahindra Rs 3.6 crore, Rs 3 crore and Rs 1.5 crore, respectively.
“Tech Mahindra has filed these cases in its capacity as the operational creditor of RCom and its subsidiaries. The liabilities mentioned in the petition arise out of the service agreements between Tech Mahindra and the Reliance firms involved,” a person in the know told Mint.
When contacted, Tech Mahindra declined to comment since the company is currently in the silent period that precedes quarterly results announcements. Reliance Communications did not comment either.
Tech Mahindra is now the second company after Ericsson India to go to the court demanding the money it is owed by the Anil Ambani promoted company. Ericsson had filed cases against RCom and two of its subsidiaries – Reliance Infratel and Reliance Telecom. The petitions are yet to be admitted and the cases will be heard on Friday.
RCom has a debt of over Rs 45,000 crore and has been trying to pare a part of it for some time now. The company announced earlier this year that it would pare around 60 percent of its debt through a merger with Aircel and by selling stake in its tower business to Canada’s Brookfield Infrastructure.
However, on October 1, RCom announced that the deal with Aircel has been called off because of regulatory delays and opposition from operational creditors like Ericsson, Indus Towers, and Bharti Infratel, among others.
In June, rating agency Fitch downgraded the company’s long-term foreign and local-currency ratings to “CCC” from “B-plus”. A CCC rating indicates that default is a real possibility.
Discover the latest business news, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
