21 February 2019: With reference to the Order dated February 20, 2018 of the Hon’ble Supreme Court, directing RCOM Group to pay Rs. 550 crore to Ericsson, we enclose herewith the media release dated February 21, 2019 being issued by the Company which is self explanatory.
A Reliance Communications Limited spokesperson said:
Reliance Communications group has requested urgent approval from its lenders to release approx. Rs 260 crore received from Income Tax refunds, lying in its bank account, directly to Ericsson.
A sum of Rs 118 crore has already been deposited with the Hon’ble Supreme Court.
RCOM is confident of raising the balance approx Rs. 200 crore for payment to Ericsson, in order that the entire Rs 550 crore plus interest thereon stands paid to Ericsson well within the time of 4 weeks allowed by the Hon’ble Supreme Court.
20 February 2019: The following is the chronology of events in the case in which the Supreme Court Wednesday held Reliance Communications Ltd (RCom) Chairman Anil Ambani and others guilty of contempt of court.
– Jan 25, 2013: Ericsson, RCom enter pact to operate and manage RCom’s nationwide telecom network.
– May 7, 2017: Ericsson issues three notices to three Reliance companies to pay Rs 9.78 crore in dues.
May 19: The companies state performance of Ericsson had been inconsistent
Sep 7: Ericsson terminates agreement, asks them to pay outstanding amount in full.
Sep 8: Ericsson files three applications under Insolvency and Bankruptcy Code as operational creditors.
– May 15, 2018: National Company Law Tribunal admits Ericsson’s plea for beginning of insolvency proceedings against RCom.
May 18: NCLT appoints three Interim Resolution Professionals for the process.
May 30: National Company Law Appellate Tribunal stays bankruptcy proceedings, RCom says it has agreed to pay Rs 550 crore dues within 120 days.
July 17: 3 Reliance companies file plea in SC seeking quashing of corporate insolvency resolution process in view of settlement of disputes between them and Ericsson.
Aug 3: SC approves settlement between RCom and Ericsson, allows RCom to sell assets worth about Rs 25,000 crore.
Aug 9: Undertakings given by chairmen of Companies says dues will be paid upon sale of company’s assets.
Sep 27: Reliance firms seek extension of 60 days.
Oct 1: Ericsson files contempt plea against RCom and the group companies.
Oct 23: SC grants RCom till Dec 15 for paying Ericsson.
Dec 12: RCom moves second application in SC for extension of time.
Dec 13: SC refuses any such extension.
– Jan 21, 2019: Three Reliance Companies inform SC Rs 118 crore had already been deposited with the apex court’s Registry.
Feb 1: RCom group writes to stock exchanges, making it clear that they will not resist the corporate insolvency resolution process that had been stayed.
Feb 20: SC holds Anil Ambani and others guilty of contempt of court.
20 February 2019: Mapletree Leather Goods, the sole resolution applicant for the Ruia Group-owned Falcon Tyres, which is currently undergoing insolvency proceedings under the Bengaluru bench of the NCLT, has accused Edelweiss Asset Reconstruction Company, among other lenders, of acting contrary to the provisions of the Insolvency and Bankruptcy Code (IBC) by rejecting its resolution plan.
On the other hand, lenders reasoned that although Mapletree put in a bid, its offer was rejected as the upfront payment was too low and it promised to pay around Rs 100 crore over a three-year timeframe.
In turn, lenders have suggested to Mapletree that if it is interested in the Falcon Tyre buyout,it may participate when the company is liquidated.
The lenders have raised concern about Mapletree’s ability to turn the stressed company around, given that it is involved in tanning and dressing of leather, manufacture of luggage handbags, saddlers and harnesses. The applicant on its part has proposed to set up a monitoring committee of nominees from the lenders, workmen, RP and others who will look after the progress of the turnaround.
Nevertheless, Mapletree has approached the NCLT asking it to order the lenders to consider its proposal.
In May 2018, at Edelweiss’ behest, the NCLT ordered commencement of the insolvency resolution process. However, it was the second time Edelweiss has resorted to legal means to settle its claim. In 2017, it had moved court seeking liquidation but had withdrawn its plea at later stages of the case.
This asset reconstruction company was roped in by Falcon Tyres in 2015 to identify investors and reshuffle the management with the aim of mitigating accumulated losses. By 2017, Edelweiss had acquired about 85 per cent of Falcon Tyres’s debt, becoming its largest lender. That year, moved court for liquidation.
The Ruia Group, led by industrialist Pawan Ruia, once considered the turnaround tycoon, acquired Falcon Tyres in December 2005 but by January 2015, lost control of the company after it became a minority stakeholder in its own firm.
Its other acquisitions – Dunlop India and Jessop & Company – also turned sick and closed down with the West Bengal government stepping in to take control of these two companies.
20 February 2019: Maharashtra Seamless rose 2.1% to Rs 442 at 11:45 IST on BSE after the company made payment of Rs 477 crore for acquisition of United Seamless Tubulaar.
The announcement was made after market hours yesterday, 19 February 2019.
Meanwhile, the S&P BSE Sensex was up 202.36 points or 0.57% at 35,554.97
On BSE, so far 6,310 shares were traded in the counter as against average daily volume of 5,628 shares in the past one quarter. The stock hit a high of Rs 449 and a low of Rs 440.95 so far during the day.
Maharashtra Seamless made payment of Rs 477 crore for acquisition of United Seamless Tubulaar (USTPL) under the Corporate Insolvency Resolution Process under the Insolvency and Bankruptcy Code 2016 as approved by Hyderabad Bench of National Company Law Tribunal (NCLT).
Maharashtra Seamless’ net profit surged 139.28% to Rs 92.77 crore on 39.79% rise in net sales to Rs 785.88 crore in Q3 December 2018 over Q3 December 2017.
Maharashtra Seamless manufactures seamless pipes & tubes.
20 February 2019: A division bench of Telangana High Court on Tuesday questioned Anrak Aluminium Limited as to how it would operate in the event of cancellation of agreement by the government for supply of raw material and no scope to get raw material from Odisha state.
The bench was dealing with an appeal by RBI against the order of a single judge who directed SBI to withdraw the petition filed under the Insolvency and Bankruptcy Code. Anrak had established an aluminium refinery unit with an investment of Rs 6,000 crore in Andhra Pradesh. However, it has failed to commence its operations and faced pressure from banks for repayment of loans.
A consortium of banks agreed to a one-time settlement proposal. In the meantime, SBI moved the tribunal. Aggrieved with the same, Anrak moved the HC.