Ericsson sues to force India’s Reliance Communications into insolvency

Ericsson sues to force India’s Reliance Communications into insolvency

Swedish telecom equipment maker, Ericsson is pushing that India’s mobile carrier, Reliance Communications declares itself insolvent.

Shares of Reliance Communications fell immediately trading started on India’s bourse early Thursday morning.

Ericsson bone of contention is the inability of Reliance Communications to pay its backlog of debt totaling USD180 million owed by the company and its two other subsidiaries.

Reliance has been struggling for a while now. The company reported a third quarter loss. It has also been canvassing its creditors on how it will restructure its loan obligations towards the end of 2017.

According to data compiled by Reuters, Reliance Communications’ bonds also fell in early trading on Thursday, with its 6.5 percent bonds due 2020 indicating at 55/60 cents on the dollar, versus earlier indicating at 57/62 on the dollar.