India's Reliance Communications (RCom) has received court approval to proceed with the sale of its wireless assets to Reliance Jio Infocomm, after agreeing to pay creditor Ericsson 5.5 billion rupees ($80.1 million) to settle the insolvency petitions filed by the Swedish vendor.
In a statement to the Bombay Stock Exchange, RCom said India's Supreme Court has passed an order allowing the company to proceed with the sale of its spectrum, fiber, tower, media convergence node and other assets as part of its debt resolution plan.
The sales of all assets are expected to close by the end of the month, RCom said. The total value of the transactions amounts to roughly 250 billion rupees ($3.6 billion).
The payment to Ericsson will meanwhile be made on or before September 30, settling the three insolvency petitions filed by Ericsson as a result of unpaid dues.
Ericsson had filed after RCom revealed in March that it planned to sell off its wireless business to Reliance Jio Infocomm as part of a radical plan to reduce its net debt. Ericsson had been seeking around $177.8 million in unpaid dues. The two companies reportedly started negotiating a settlement agreement in May.