Wealth Management

Chinese banks demand $2.1 billion from tycoon Anil Ambani's firm

Bloomberg/Dhiraj Singh

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India’s bankruptcy court is hearing lenders and the former Indian billionaire’s telecom firm as it attempts to find buyers for the company’s assets and pay debt.

Tuesday 18, June 2019

(Bloomberg) --Chinese lenders, including China Development Bank, Industrial and Commercial Bank of China and Exim Bank of China, have demanded at least $2.1 billion from embattled Indian tycoon Anil Ambani’s Reliance Communications, that slid into bankruptcy earlier this year.

State-owned China Development Bank, with loans worth INR 98.6 billion ($1.4 billion) was the biggest creditor to the indebted telecom company. Exim Bank of China sought payment of INR 33.6 billion, while Industrial and Commercial Bank of China claimed INR 15.54 billion.

Anil Ambani’s older sibling and Asia’s richest man Mukesh Ambani’s Reliance Jio Infocomm had earlier offered to purchase RCom’s assets in a INR 173 billion deal, which would have helped partly pay off lenders. The deal fell through after encountering regulatory hurdles.

Mukesh Ambani had in March helped his younger brother avert the risk of being jailed by making an $80 million payment on his behalf to the local unit of Ericsson AB for past maintenance services.

Following is a list of Reliance Communication’s top seven lenders as of 13 June, Chinese banks account for about one-fourth of the total claims.

Investment bank VTB Capital of Russia has also featured in the list with a claim of INR 5.11 billion while Standard Chartered Bank (London), Deutsche Bank (Hong Kong) as well as DBS Bank and Emirates NBD Bank are among other foreign institutions in the financial creditors chart.

TAGS : Anil Ambani, China Development Bank, Industrial and Commercial Bank of China, Exim Bank of China, Mukesh Ambani, Industrial and Commercial Bank of China

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