The National Company Law Appellate Tribunal (NCLAT)s April 13 order in the Aircel matter has precipitated various issues which will have implications on financing of assets such as telecom spectrum and restructuring of corporate debtors entitled to use said assets. The case has added relevance at this point of time as Vodafone Idea battles for survival with Rs 1.8 lakh-crore in debt.
In the order, NCLAT has held that the spectrum which a company can use after being granted a licence by the government is an intangible asset, and as such can be subject to the Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code (IBC). However, spectrum cannot be treated as a security interest capable of being enforce…
Read the full article at: https://www.moneycontrol.com/news/opinion/nclat-ruling-on-spectrum-could-make-resolution-tough-if-vodafone-idea-files-for-bankruptcy-7308931.html
