Jio to acquire Reliance Infratel, gets approval from NCLT – Times of India

Mukesh Ambani-led Jio placed a bid to acquire the tower and fibre assets of Reliance Infratel (RITL) earlier this month. This is a debt-ridden subsidiary of Anil Ambani-managed company Reliance Communications (RCOM). Jio offered Rs 3,720 crore to complete the acquisition of RITL which was undergoing an insolvency resolution process. According to a report by PTI, the National Company Law Tribunal (NCLT) has approved Jio’s offer. To complete the acquisition, NCTL has asked the company to deposit Rs 3,720 crore in the State Bank of India (SBI) escrow account. Earlier, in March 2020, Jio’s resolution plan was already approved by the Committee of Creditors with a 100% vote.
Why was the resolution plan delayed?
Reliance Projects and Property Management Services which is a Jio subsidiary explained to NCLT why the implementation of the resolution plan was delayed. Last month’s application mentioned that the pending proceedings over the distribution of the amount and the issuance of a ‘no dues’ certificate were the reason for the delay.

The application also noted that this delay is harming the interests of both the corporate debtor (RITL) and the resolution applicant (Jio). The company also added that inter-creditor disputes that are delaying the acquisition of RITL assets may also cause the value of the assets to deteriorate. Now, the Jio subsidiary has moved a fresh application to NCLT to complete the acquisition process.
What assets does RITL own
RCOM’s tower and fibre assets are owned by its holding company RITL. As per the report, the subsidiary holds fibre assets of around 1.78 lakh route kilometres and 43,540 mobile towers across the country.
How will be funds distributed
Once the inter-creditor dispute is settled the resolution funds will be distributed among the lenders. The banks that are engaged in a legal battle over the distribution of funds include — SBI, Doha Bank, Standard Chartered Bank and Emirates Bank among others.