Business

Public Relations Company Files Insolvency Plea Against Reliance Communications

A man opens the shutter of a shop painted with an advertisement of Reliance Communications in Mumbai, India, November 3, 2015. Credit: Reuters/Shailesh Andrade/Files

A man opens the shutter of a shop painted with an advertisement of Reliance Communications in Mumbai, India, November 3, 2015. Credit: Reuters/Shailesh Andrade/Files

Mumbai: Fortuna Public Relations Pvt. Ltd has filed an insolvency petition against phone carrier Reliance Communications Ltd over a claim for unpaid dues of Rs 4.4 million, a lawyer representing the public relations firm said on Monday.

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

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

A spokesman for Reliance 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 debt 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 petition with the National Company Law Tribunal, making it the first financial creditor to drag RCom into insolvency proceedings.