Mumbai: In a bid to move closer to resolving its debt woes, Reliance Communications has received the green light from the National Company Law Tribunal (NCLT) Mumbai to sell several of its unencumbered real estate assets. This decision, announced on Wednesday, marks a significant step forward in the company’s restructuring efforts.
The NCLT order grants Reliance Communication’s resolution professional the authority to initiate the sale of specific assets under Regulation 29 of the CIRP Regulations. These assets include:
Chennai Haddow Office: Comprising both land and the building itself, this office space is a prime property for potential buyers.
Ambattur Land Parcel (Chennai): Spanning approximately 3.44 acres, this land parcel offers development potential for various purposes.
Pune Land Parcel: Measuring 871.1 square meters, this land provides another valuable location for potential investment.
Bhubaneswar Office Space: This office space offers immediate value for acquisition and can be utilized for various business needs.
Investments in Campion Properties and Reliance Realty: These investments represent additional assets that can be leveraged for debt reduction.
The proceeds from the sale of these assets will be considered unencumbered, meaning they can be freely distributed during the implementation of the approved resolution plan or, if necessary, during liquidation. This crucial step provides RCom with much-needed liquidity to address its outstanding debts and move closer to financial stability.
While the order clarifies that asset sale can proceed after the resolution plan is submitted for approval, it’s important to note that the plan itself is still under development. The next crucial step will be for RCom and its stakeholders to finalize and submit the plan for NCLT approval, paving the way for the sale of assets and ultimately, the company’s potential revival.
This development signifies a positive step for Reliance Communication in its ongoing debt restructuring process. By monetizing its valuable real estate assets, the company can generate significant funds to address its financial challenges and potentially emerge from this difficult period stronger. It remains to be seen how the plan unfolds and what the future holds for Reliance Communication, but this move undoubtedly marks a significant turning point in the company’s journey towards financial recovery.
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