RCOM, ERICSSON Spat over Non-Payment of Dues | CORPORATE ETHOS

RCOM, ERICSSON Spat over Non-Payment of Dues

By: | January 7, 2019
RCOM

Reliance Communications (RCOM) and Ericsson India Pvt Ltd are fighting it over a non-payent of dues to the extent of Rs 550 cr. The Swedish telecom major has alleged that it had moved contempt proceedings for the second time agasint Ambani for non-compliance of the order to clear dues. The crisis ridden telecom services firm has a debt of over Rs 47000 cr.

According to news reports RCOM agreed to pay Rs 118 cr towards outstanding dues on the unsecured loan from Ericsson while the latter said that Rs 550 cr should be deposited. The Supreme Court bench headed by Justice R F Nariman, has directed RCOM to deposit a demand draft of Rs 118 crore in the registry.However, RCOM has described as deeply regrettable the Ericsson attempt at trial by media and sensationalizing issues.

It said that Ericsson is distorting issues and no notice has been served by the Supreme Court. “Ericsson’s conduct as an unsecured creditor gravely endangers and is at the cost of secured lenders comprising 38 banks/secured creditors including 17 public sector banks and 13 foreign banks.”

RCOM stated that it has taken all required steps towards enabling the settlement and remains fully committed to make the payment to Ericsson from the proceeds of the Spectrum sale. The DoT approval is pending from 7 August 2018, for which RCOM has moved a contempt petition against DoT before the Supreme Court which is
listed on Monday, 7 January, 2019.