RCom surges 7% as CDB seen withdrawing insolvency filing

NEW DELHI: Shares of Reliance Communications surged nearly 7 per cent in Friday's trade after an ET report suggested that China Development Bank (CBD) has plans to withdraw its insolvency filing against the Anil Ambani-led company. This left Swedish equipment maker Ericsson the sole foreign company battling to recover dues from the telecom operator, the report suggested.

The hearing in the case is slated in the National Company Law Tribunal later in the day.

The scrip closed at Rs 34.05, up 2.10 per cent on BSE.


"CDB has already received some payment and is happy with the deal it is being offered," a person familiar with the matter told ET. The Chinese bank, RCom's largest lender, will still have the right to refile this application if the final settlement is delayed, the person said.

It is unlikely that operational creditors — vendors with outstanding payments — and unsecured lenders will receive significant payments, if any at all, another person close to the developments said.

CDB moved the NCLT in November against both RCom and its subsidiary Reliance Telecom for its dues.

But RCom Chairman Ambani said that the telco had reached an out-ofcourt settlement with Chinese lenders, without disclosing details.