Reliance Infratel withdraws petition seeking permission for asset sales

Reliance Infratel has reached an agreement with its minority shareholder HSBC Daisy Investments (Mauritius) to settle a dispute over non-payment of dues, paving the way for sale of the firm's telecom tower business to clear bank loans. Following the development, the Anil Ambani led firm today withdrew its petition from the National Company Law Appellate Tribunal (NCLAT) seeking permission to sell its tower and fibre assets. The move will allow debt ridden Reliance Communications to proceed with asset monetisation by selling tower and fibre assets of Reliance Infratel Ltd (RITL). During the proceedings of NCLAT, the counsel appearing for the RCom subsidiary informed the appellate tribunal that it has reached a settlement with HSBC Daisy Investments (Mauritius), which holds 4.26 per cent share holding in the company. "Parties have reached settlement. The moment company exits IBC process, they would sign the terms of consent," the RITL counsel said. Following this, a NCLAT bench headed by Chairman Justice S J Mukhopadhaya allowed the company to withdraw its plea. "In view of consent terms, parties are allowed to withdraw their appeal. Both appeals are accordingly disposed of," the bench said. The RCom group firm's petition was also backed by state-owned lender SBI at NCLAT. The Mumbai bench of the National Company Law Tribunal had stayed the sale of tower and fibre assets of the company, a move which was challenged by RITL before NCLAT. The sale of these businesses forms an important part of the overall Rs 25,000 crore asset monetisation blueprint of the troubled company. In December 2017, Mukesh Ambani-led Reliance Jio had struck a mega deal to acquire mobile business assets including spectrum, towers and optical fibre network of RCom, owned by his younger brother Anil.