The Bombay High Court has dismissed Reliance Communications Ltd’s (RCom) plea against an arbitration court order that barred the telecom operator from selling or transferring its assets without the tribunal’s permission.
In a statement Thursday, an RCOMBSE -0.20 % spokesperson said the company would challenge the order of the Bombay High Court.
Debt-laden Rcom had appealed against the interim order in a case filed by Ericsson seeking payment of unpaid dues.
“We intend to file an appeal against the interim order of the Hon’ble Mumbai High Court. The claims of secured financial lenders stand higher in priority as compared to Ericsson, which is an unsecured operational vendor. Further, the sale of assets is being undertaken in pursuance of the decisions of the secured financial lenders,” the spokesperson said.
“The claims of secured financial lenders stand higher in priority as compared to Ericsson, which is an unsecured operational vendor. Further, the sale of assets is being undertaken in pursuance of the decisions of the secured financial lenders,” the spokesman told Reuters. On Monday, an arbitration tribunal in a legal battle with Swedish equipment provider Ericsson stayed RCom’s asset sale plan. Anil Ambani’s company is trying to sell off its assets to his brother Mukesh Ambani’s Reliance Jio Infocomm for about Rs 25,000 crore, albeit no official word on the same.