Debt-laden Reliance Communications on Monday mentioned it should promote its direct-to-home (DTH) subsidiary, Reliance BIG TV, to Veecon Media and Television.
Veecon will “acquire the entire shareholding of RBTV with business on ‘as-is where-is’ basis, along with all existing trade liabilities and contingent liabilities”, Reliance Communications (RCom) mentioned in a press release.
The firms have entered right into a binding memorandum of understanding to this impact, it added. As a part of the settlement, Veecon will retain practically 500 workers of RBTV.
“The existing DTH licence of BIG TV shall be renewed with the submission of the required bank guarantees with the Ministry of Information and Broadcasting by the buyer,” the assertion mentioned.
RBTV’s 1.2 million prospects will proceed to get pleasure from uninterrupted companies, it added.
“The transaction will help reduce the liability of unsecured creditors, benefiting all stakeholders, including lenders and shareholders of RCom,” it mentioned.
The deal is topic to requisite approvals from licensors, regulatory authorities and lenders of RCom. The transaction is a part of RCom’s efforts to deal with B2B companies.
RCom, which plans to shut down voice name service from December 1, has additionally made a complete debt decision plan to its home and overseas lenders. It had earlier acknowledged that the lenders would convert a part of their debt to fairness to acquire 51 p.c management of the corporate.
The Anil Ambani-led firm may even promote telecom tower and actual property enterprise to repay Rs. 27,000 crores out of Rs. 45,000 crores debt on its books, it had acknowledged final month.
Adapted From: Gadgets360