August 6, 2018 / 8:32 AM / 11 days ago

India's RCom, Sweden's Ericsson reach $80 million settlement

(Reuters) - Reliance Communications Ltd (RCom) 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.

FILE PHOTO: A taxi drives past a Reliance Communications Ltd., controlled by billionaire Anil Ambani, office building in Kolkata, India, September 9, 2016. REUTERS/Rupak De Chowdhuri/File Photo

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.

Reporting By Aparajita Saxena in Bengaluru; Editing by Subhranshu Sahu

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