SBI Approached 4 Big Auditors to Appoint a Resolution Professional for R Com
The State Bank of India which is one of the major lenders to Anil Ambani’s Reliance Communications (R Com), has approached some of the Big Four Audit firms and consultants to identify and select a resolution professional (RP) to manage insolvency proceedings of the telecom company.
EY and a previously appointed resolution professional for R Com are among the firms that have been interviewed by the State-Run lender, according to the people who were in the knowledge of the same.
SBI is taking steps to initiate an independent application to take R Com to the National Company Law Tribunal, although the Debt-Ridden company had come up with information of stock changes on 4th of Feb that had now decided to submit itself to NCLT as it was unable to pay its debts. The lender also has the alternative to wait for the R Com to initiate bankruptcy process on its own and then recommend an RP of its choice once the committee of creditors is convened, according to the sources. R Com owes banks close to Rs 40,000 crore.
NCLT’s Approval to RBSA as RP:
“It’s basically a bank policy which works on the concept of not commenting upon the individual accounts and their treatment.” Said an SBI spokesperson responding to the emailed queries. Swedish telecom firm had not paid Rs 550 crore in dues for equipment supplied to it.
NCLAT had approved the appointment of consulting firm RBSA as the resolution professional for R Com and two of its subsidiaries- Reliance Infratel and Reliance Telecom- at the time.
R Com later got a stay on the insolvency proceedings by promising to repay Ericsson’s dues within a stipulated time frame at the national company law appellate tribunal (NCLAT). Earlier this year, after its proposed deal the NCLAT, but this was opposed by the Swedish equipment maker.
The dispute between the two parties is now being adjudicated upon by the Supreme Court. R Com has been unsuccessful in repaying creditors despite numerous attempts at settlements. The proposed deal to sell spectrum to Mukesh Ambani’s Jio that would have helped the company shed some of its debt has also failed to make headway. R Com stopped wireless telephony services to customers in late 2017 and said it would only focus on its B2B offerings to reduce costs.