Exploring Reliance Communication Infrastructure Ltd.’s Insolvency: Is it Finally Distress Resolution or Asset Trading
Reliance Communication Infrastructure Limited (RCIL), a subsidiary of Reliance Communications, faced financial turmoil and entered insolvency in 2019 with creditor claims of INR 47,251 crore. However, the Hon’ble NCLT recently approved a resolution plan for a mere INR 475 crore (less than 1% of the claim). The plan, presented by a company within the @Reliance Industries Group, owned and controlled by Mr. Mukesh Ambani, seems to be focuses on asset trading rather than resolving the company’s financial distress.
While creditors/bankers will monetize real estate assets that has been valued at INR 90 Crores,
What about monetisation of intangible assets?
Important to think whether the Purchase consideration has been fairly valued?