Ericsson files insolvency case against Reliance Communications in NCLT over Rs 1,155 cr dues
Mumbai: Ericsson’s Indian subsidiary has filed insolvency petitions against Reliance Communications and two of its companies to recover unpaid dues, the Indian mobile operator said in a stock exchange filing on Wednesday.
The Swedish telecoms equipment maker, which signed a seven-year deal in 2014 to operate and manage Reliance Communications’ nationwide network, is seeking a total of 11.55 billion rupees ($180 million) from the three companies, the filing said.
Reliance Communications said it planned to challenge the insolvency petitions. The filing said the Ericsson case would go before the National Company Law Tribunal (NCLT), the designated court for bankruptcy cases in India, on 26 September.
“Ericsson has done this as a last resort in order to resolve an issue regarding debt that Reliance owes to Ericsson for services provided under a contract. As the legal process is ongoing, we don’t have any further comments at this point,” the Swedish company said.