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India, Sweden Firms in $80m Settlement

India, Sweden Firms in $80m SettlementIndia, Sweden Firms in $80m Settlement

India’s Reliance Communications Ltd said on Monday it had received approval from the Supreme Court to proceed with the sale of its wireless assets to Reliance Jio after it agreed to pay 5.5 billion rupees ($80.06 million) to settle dues with Swedish telecom gearmaker Ericsson. In May, India’s bankruptcy court admitted a plea by Ericsson seeking insolvency resolution against RCom over unpaid service dues, potentially derailing the company’s 250 billion rupee plan to sell assets to Reliance Jio. Ericsson had signed a seven-year deal in 2014 to operate and manage RCom’s nationwide telecom network, and sought 11.55 billion rupees ($171.16 million) from the company and two of its subsidiaries. “The company expects to complete all the transactions by August, thereby accelerating its overall debt resolution plan,” RCom said. The company has also entered into an agreement with Mukesh Ambani-led Reliance Jio and asset management firm Brookfield to sell telecom business assets.

 

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