Chinese banks demand $2.1 billion from embattled Anil Ambani’s firm

      Comments Off on Chinese banks demand $2.1 billion from embattled Anil Ambani’s firm

By  PR Sanjai

NEW DELHI: 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 tycoon Anil Ambani’s Reliance Communications Ltd., that slid into bankruptcy earlier this year.

State-owned China Development Bank, with loans worth Rs. 9,860 crore ($1.4 billion) was the biggest creditor to the indebted telecom company, according to a filing made by the Indian company to stock exchanges. Exim Bank of China sought payment of Rs. 3,360 crore, while Industrial and Commercial Bank of China claimed Rs. 1,554 crore, according to the filing.

India’s bankruptcy court is hearing lenders, and the former billionaire’s telecom firm as it attempts to find buyers for the company’s assets and pay debt. Anil Ambani’s older sibling and Asia’s richest man Mukesh Ambani’s Reliance Jio Infocomm Ltd. had earlier offered to purchase RCom’s assets in a Rs. 17,300-crore 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 June 13. Chinese banks account for about one-fourth of the total claims.

CreditorAmount Claimed (in crore rupees)
China Development Bank9,860
State Bank of India4,910
Life Insurance Corp. of India4,760
Exim Bank of China3,360
Bank of Baroda2,700
Madison Pacific Trust2,350
Axis Bank2,090

Reliance Communications on Monday released list of financial creditors that are claiming Rs. 57,382 crore under bankruptcy proceedings.

Investment bank VTB Capital of Russia has also featured in the list with a claim of Rs. 511 crore while Standard Chartered Bank (London), Deutsche Bank (Hong Kong), DBS Bank and Emirates NBD Bank are among other foreign institutions in the financial creditors chart.

Source: Bloomberg