Reliance Communications (RCom), a major telecom company now undergoing bankruptcy proceedings, has failed to sell its non-core assets. The company has seen no party interested in its non-core assets, which include land in Pune and Chennai and shares in Reliance Realty and Campion Properties Ltd.
RCom had told the Bombay Stock Exchange (BSE) that the creditors’ committee had approved the sale of non-core assets. An EoI (Expression of Interest) was invited by bidders for the first time on April 17th. However, according to an ET Telecom report, there were no bids, so the EoI submission deadline was extended to June 27, 2022. Once again, there were no bidders.
RCom had to go to the NCLT (National Corporate Law Tribunal) on July 20 to approve the sale of said assets. Since the company did not receive any interest in the first place, there is no point in approaching NCLT.
Why is there no single bid for RCom’s non-core assets?
There may not have been bids yet because there is a great deal of uncertainty about whether NCLT will allow these assets to be sold in the first place, and there are also questions about the hidden uncertainties that these assets might be associated with.
The company was reportedly looking to sell its business as well. But for enterprises, what RCom has today is just a large portion of its voice and messaging services, while other carriers have more advanced services in their portfolio. Thus, there may be no business takers for RCom companies either.