The success of the bankruptcy court is key to reviving India’s lenders, which are hamstrung with a $130 billion pile of bad loans. That’s constrained their ability to lend, even as India battles slowing economic growth.
Reliance Communications’ resolution professional -- a court-appointed administrator in India’s insolvency courts -- argued that GCX was dependent on the Indian telecom operator, and wouldn’t have access to its landing stations and customers if it were to sever the link by handing over ownership to GCX’s creditors, Chapter 11 filings showed.
RCom’s spokesman didn’t have any immediate comment when contacted. There was no immediate reply to emailed questions to the company’s resolution professional, and phone calls went unanswered.
Reliance Communications’ administrator also contested GCX’s resort to the Chapter 11 process after out-of-court restructuring talks failed, and the expansion of the unit’s board and the appointments of a chief restructuring officer and an independent director before that, according to the filings.