Annevee 1A Ericsson files contempt of court petition against Anil Ambani SC will hear the plea of RCom on October 4 whereas a date is not finalised for Ericsson Kiran Rathee | October 2, 2018, Business Standard ‘Swedish telecom gear maker Ericsson has filed a petition in the Supreme Court for contempt of court against Anil Ambani, chairman of Reliance Communications after the firm failed to pay about Rs 5.50 billion to Ericsson to settle the dispute over dues. RCom had to pay the amount to Ericsson by September 30 but the company approached SC seeking a 60-day extension. As Ericsson did not agree to the extension, it has now filed a contempt of court petition. SC will hear the plea of RCom on October 4 whereas a date is not finalised for Ericsson. However, sources say Ericsson's petition can also be taken up on October 4. Meanwhile, the National Company Law Appellate Tribunal will hear the matter on October 3. The tribunal has asked the two parties to settle the disputes. Queries sent to the companies remained unanswered In order to pare debt, RCom has already sold its tower and fibre business to. Reliance Jio. However, selling of spectrum to Jio has not received a clearance from Department of Telecommunications yet. RCom has contested the department's Rs 20 bn (approx) demand for spectrum charges for clearing the deal SOURCE: https://www.business-standard com/article/companies/ericsson-files- contempt-of-court-petition-against-anil-ambani-118100200333_1.htmlANNWEexURE 1B Over 10 banks red flag Anil Ambani's Reliance Communications over missed loan payments By Sugata Ghosh Romit Guha , ET Bureaul May 29, 2017 MUMBAI | NEW DELHI: The plight of Reliance Communications is more serious than what credit rating agencies believe. The Anil Ambani-owned mobile phone operator has defaulted on its loan servicing obligations with more than 10 local banks, some of whom have categorised the exposure as "special mention account" in their asset books. SMA assets are loans where the interest payment from a borrower is overdue: if a loan isn't serviced within 30 days after falling due, it's marked as SMA ‘and if unpaid for 60 days or more, it's classified as SMA 2. The loan becomes non-performing asset (NPA) — which requires a bank to provide for the loan and take a knock on profitability — if interest is unpaid for 90 days. Loans to the telco have been red flagged as either SMA1 or SMA2 by at least 10 lenders in India, a bank official told ET. A few banks will have to treat the account as an NPA after a fortnight, said another banker. Shares of RCom have fallen 20% in the past two weeks after CARE and ICRA downgraded ratings of the telecom operator's bonds due to the pressure the telco faces in Indian telecom market and its debt obligation. Rating agencies, however, do not have access to the information on SMA loans which banks share among themselves and the Reserve Bank of India. CARE in its report said the downgrade was the result of Mukesh Ambani-owned Reliance Jio's impact on operational risk profile of RCom. Knowledge of an actual default could prompt any agency to take a sterner view of the rating. Responding to ET's query about RCom defaulting on loan servicing with several banks, a company spokesperson said: "Post signing of binding documents for the Aircel and Brookfield transactions, RCom has formally advised all its lenders that it will be making repayment of an aggregateamount of Rs 25,000 crore from the proceeds of these two transactions, on or before Sept 30, 2017. The said amount will cover not only all scheduled repayments, but also include substantial pre-payments to all lenders on a pro-rata basis." He also said that "RCom is presently engaged in discussions with its lenders to obtain their requisite consents for the two transactions and to refinance scheduled instalments falling due in the interim period up to Sept 30, to facilitate expeditious closing of both transactions in the best interests of all stakeholders." Based on the large number of approvals already received for the two transactions and continuing good progress for the balance, RCom expects to meet its all debt repayment obligations in line with these plans, and Substantially reduce its overall debt," the official added. The company suffered a loss of Rs 966 crore in the January-March quarter — its second straight quarterly net loss leading to its first full fiscal net loss The telco had a debt of around Rs 42,000 crore as on March 31, which it intends to reduce through its deals with Aircel and Brookfield, to whom RCom is selling 51% stake in its tower unit Reliance Infratel for Rs 11,000 crore. Besides intense competition, RCom’s fourth quarter earnings were hurt by the rise in costs, ICRA, which downgraded RCom Group from ‘BBB’ to ‘BB’, fears competition from Jio could impact profitability and revenue generating capacity of the telecom firm. RCom Group here includes RCom's units RelianceTelecom and Reliance Infratel SOURCE:https://economictimes.indiatimes.com/industry/banking/fina nce/beleaguered-reliance-communications-banking-on-aircel- brookfield-deal-proceeds-to-avoid-npa-tag/articleshow/58885495.cms