Reliance Communications: Most lenders oppose China bank’s insolvency plea

The lenders will be opposing the petition by CDB, at the admission stage itself and have decided to appoint J Sagar Associates as their legal counsel, the statement claimed further.

By: ENS Economic Bureau | Mumbai | Published: December 1, 2017 1:37 am
Reliance Infrastructure, Anil Ambani, Anil Ambani DGCEI, Ambani tax, Ambani non-payment tax, Ambani investigated, Tax fraud Ambani, RInfra Ambani, Business news Anil Ambani, Chairman of the Reliance Anil Dhirubhai Ambani Group.

Debt-laden Reliance Communications, belonging to the Anil Ambani group, has claimed that a majority of its lenders are opposing China Development Bank’s (CDB) decision to initiate insolvency proceedings before the National Company Law Tribunal (NCLT).

“At a committee of creditors meeting on November 29, a majority of them, both foreign and domestic, aggregating to 31, decided to oppose CDB’s insolvency petition against RCom before the NCLT,” RCom claimed in a statement. RCom has over Rs 45,000 crore of debt that has turned sticky. CDB, which lent around $ 1.93 billion to RCom, last Friday filed a petition with the Tribunal, making it the first financial creditor to drag RCom into insolvency proceedings.

The lenders will be opposing the petition by CDB, at the admission stage itself and have decided to appoint J Sagar Associates as their legal counsel, the statement claimed further. State Bank leads the consortium of domestic lenders to RCom. The CDB had dragged RCom to the NCLT earlier this week seeking insolvency proceedings.

Ericsson had earlier moved to recover dues of over Rs 1,100 crore, Manipal Technologies had approached the tribunal to recover Rs 2.74 crore while software maker Tech Mahindra opted for an out of court settlement after approaching the tribunal to recover Rs 8.2 crore in dues.

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