Indian public relations firm files insolvency plea against RCom

Published On: 04, Dec 2017 | Source: business-standard.com

Public Relations Pvt. Ltd has filed an insolvency against phone carrier Communications Ltd over a claim for unpaid dues of 4.4 million rupees ($68,000), a lawyer representing the public relations firm said on Monday.

Separately, has filed another insolvency against Webstore Ltd, a unit of the phone carrier, over unpaid dues of about 4.1 million rupees, said Darshan Mehta, a partner at law firm Dhruve Liladhar & Co, which is representing in the two cases.

The National Company Law Tribunal will hear the two cases next on Dec. 19, Mehta said.

A spokesman for Communications declined to comment.

The insolvency pleas follow two separate insolvency petitions filed by China Development Bank and telecoms gearmaker Ericsson.

RCom, backed by businessman Anil Ambani, has struggled under a heavy load and has reported a string of losses during a price war in the highly competitive Indian telecoms market, prompting it to announce a partial shutdown of operations.

CDB, which sources have said is owed nearly $2 billion, last month filed a with the National Company Law Tribunal, making it the first financial creditor to drag into insolvency proceedings. ($1 = 64.3880 Indian rupees)

 

(Reporting by Devidutta Tripathy and Sankalp Phartiyal; Editing by Keith Weir)