GoI, DoT to get zero proceeds against AGR dues of Rs 30K cr in RCom

New Delhi, Aug 20 (IANS) Chinese banks will get the lions share of Rs 7,000 crore or 30 per cent in the Reliance Communications Limited (RCom) and Reliance Telecom Limited (RTL) resolution plan while the Department of Telecommunications (DoT) will get zero proceeds.

The Government of India and the DoT against the AGR dues of Rs 30,000 crore would get zero proceeds.

According to banking sources, Chinese banks namely China Development Bank, China Exim Bank and ICBC will get the lion’s share of 30 per cent or Rs 7,000 crore in the RCom, RTL and RITL resolution plan. The NCLT Mumbai will hear the resolution plan of RCom, RTL and RITL on Friday.

The Committee of Creditors (CoC) is said to have decided to give zero proceeds to DoT out of the total proceeds of Rs 23,000 crore from the resolution plan.

While Chinese banks will get the largest share of Rs 7,000 crore at 30 per cent, other foreign lenders will get Rs 2,300 crore or a share of 10 per cent. State Bank of India (SBI) and other Indian banks to get Rs 13,000 crore from the proceeds.

While the lenders will get Rs 23,000 crore, DoT is an operational creditor. As per the Insolvency and Bankruptcy Code (IBC), operational creditor gets zero proceeds as the secured lenders first get the amount against the total dues.

The DoT and the Government of India have objected to the resolution plans of RCom and RTL.

–IANS

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