Big relief to Anil Ambani! RCom share price soars as Supreme Court gives more time to pay up Ericsson
Reliance Communication share price surged nearly 3.6% on the BSE following media reports that the Supreme Court had allowed the company time till December 15, 2018 to repay Rs 550 crore to Ericsson. Earlier this month, Anil Ambani-led Reliance Communications had sought another 60 days for repayment of the amount to unsecured creditor Ericsson, as its spectrum sale could not be completed due to factors beyond its control.
RCom share price surged 3.6% to an intra-day high of Rs 11.29 on the BSE during early afternoon trade deals on Tuesday. On the National Stock Exchange, RCom shares surged by 3.67% to a high of Rs 11.30 per share intra-day. Rcom stock has fallen nearly 70% since the beginning of this year as of its previous close.
Earlier this month, Swedish telecom equipment maker Ericsson had asked the Supreme Court to bar Anil Ambani and two senior executives from leaving India in a contempt of court plea, after the telco had defaulted on payment of Rs 550 crore in dues. The Anil-Ambani led company had previously reached a settlement with Ericsson for payment of Rs 550 crore against the dues of Rs 1,500 crore by September 30 from its spectrum sale to elder brother Mukesh Ambani’s Jio Infocomm. However, the payment was not made.
Anil Ambani’s RCom had called Ericsson’s plea “unwarranted” and said the company had already requested the top court for extending the payment deadline by 60 days. According to RCom, an application had already been filed on September 28 in the apex court seeking extension of time for making payment to the Swedish telecom equipment maker by 60 days. In a statement to stock exchanges, RCom had said that the matter was slated to be heard on October 4.
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