RCom-Jio deal: Reliance Infratel, HSBC Daisy submits final consent terms to NCLAT
This comes a month after Reliance Infratel withdrew its appeal before NCLAT against NCLT order which prohibited it from selling its assets, following a settlement with HSBC Daisy
New Delhi: Reliance Infratel Ltd and its offshore investor and minority shareholder HSBC Daisy Investments (Mauritius) Ltd on Friday submitted to the National Company Law Appellate Tribunal (NCLAT) their final consent terms with respect to their dispute over sale of tower and fibre assets by the telco to Reliance Jio Infocomm Ltd.
This comes a month after Reliance Infratel, a unit of Reliance Communications Ltd (RCom), withdrew its appeal before NCLAT against an order of the Mumbai bench of the National Company Law Tribunal (NCLT), which prohibited it from selling its assets, following a settlement with HSBC Daisy.
The settlement paved the way for Anil Ambani-led RCom’s deal with Mukesh Ambani’s Reliance Jio for the sale of its assets mortgaged with different banks, to avoid insolvency proceedings.
The final agreement was signed by the parties on 15 June, Salman Khurshid and Ashish Prasad, appearing for Reliance Infratel and HSBC Daisy, respectively, informed the two-judge NCLAT bench led by Justice S.J. Mukhopadhyay, and placed the agreement for record before the bench.
On 12 March, NCLT’s Mumbai bench had stayed the sale of tower and fibre assets by Reliance Infratel in a plea by HSBC Daisy that alleged oppression of minority shareholders and mismanagement and saying that their consent was not taken for the asset sale as should have been done under the articles of association of the company.
Subsequently, in April, Reliance Infratel moved the appellate tribunal challenging the stay.
A stay imposed by Bombay high court on the sale of other assets—spectrum, media convergence nodes (MCN) and real estate (at New Delhi, Chennai, Kolkata, Jigni and Tirupati)—was vacated by the Supreme Court on 5 April.
Reliance Group companies have sued HT Media Ltd, Mint’s publisher, and nine others in the Bombay high court over a 2 October 2014 front-page story that they have disputed. HT Media is contesting the case.
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