Sunday, 24 September 2017

Reliance to fight Ericsson insolvency filing

By Mary Lennighan, Total Telecom
Thursday 14 September 17

Swedish equipment maker claims Indian telco owes it more than €150 million in unpaid debts

Reliance Communications on Wednesday confirmed that Ericsson has filed an insolvency case against it and two of its subsidiaries in a bid to recover debts totalling 11…

Reliance Communications on Wednesday confirmed that Ericsson has filed an insolvency case against it and two of its subsidiaries in a bid to recover debts totalling 11.56 billion rupees (€152 million).

In a statement to the Bombay Stock Exchange, the Indian telco said it will challenge the claim.

Reliance said the Swedish equipment maker has filed a petition in Mumbai's National Company Law Tribunal (NCLT) for recovery of 4.91 billion rupees.

It added that Ericsson has made a similar claim against towers and infrastructure business Reliance Infratel, seeking INR5.35 billion, and against mobile operator Reliance Telecom for INR1.29 billion.

Reliance said the NCLT had heard from both parties and adjourned the case 26 September.

"The company intends to challenge the said petitions," it said.

There were no further details in the filing. However, Reuters suggested the claims are linked to a seven-year network management deal Ericsson brokered with Reliance in 2014. It quoted Ericsson as saying that it is owed money by Reliance "for services provided under a contract," but the Swedish firm declined to make any further comment.

 

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