Debt-laden Reliance Communications on Monday said it will sell its direct-to-home (DTH) subsidiary, Reliance BIG TV, to Veecon Media and Television.

Veecon will “acquire the entire shareholding of RBTV with business on ‘as-is where-is’ basis, along with all existing trade liabilities and contingent liabilities”, Reliance Communications (RCom) said in a statement.

The companies have entered into a binding memorandum of understanding to this effect, it added. As part of the agreement, Veecon will retain nearly 500 employees of RBTV.

“The existing DTH licence of BIG TV shall be renewed with the submission of the required bank guarantees with the Ministry of Information and Broadcasting by the buyer,” the statement said.

RBTV’s 1.2 million customers will continue to enjoy uninterrupted services, it added.

“The transaction will help reduce the liability of unsecured creditors, benefiting all stakeholders, including lenders and shareholders of RCom,” it said.

The deal is subject to requisite…