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Shares of Reliance Communication (RCom) plunged to a record low on Monday after the company decided to opt insolvency tribunal for bankruptcy protection.
RCom, controlled by Anil Ambani, said on Sunday that will propose a similar Debt Resolution Plan in the National Company Law Tribunal (NCLT) process, that the company had been pursuing outside the court.
"The management will propose a similar Debt Resolution Plan in the National Company Law Tribunal (NCLT) process, as was earlier being pursued outside the NCLT. Key elements of the Debt Resolution Plan remain unchanged," the company said.
It said," The Company has been faced with various mostly, untenable issues raised by the Department of Telecommunications. These issues inter alia resulted in numerous legal issues at High Courts, TDSAT and the Hon'ble Supreme Court, which frustrated the existing plan and can now be addressed/resolved under the NCLT process."
Further, challenges raised by unreasonable minority lenders can be now be overcome through the NCLT's 66 percent majority rule, against the 100 percent approvals rule outside NCLT, RCom said.
Also, the Board expects substantial unsustainable debt and liabilities to stand extinguished under the NCLT process.
However, the company has decided to approach the National Company Law Tribunal (NCLT, Mumbai) to seek debt resolution under insolvency law.
The Board noted that, despite the passage of over 18 months, lenders have received zero proceeds from the proposed asset-monetization plans, and the overall debt-resolution process is yet to make any headway.
The Board has also decided that the company will seek fast track resolution through NCLT, Mumbai. The Board believes this course of action will be in the best interests of all stakeholders, ensuring comprehensive debt resolution in a final, transparent and time-bound manner within the prescribed 270 days.