China Development Bank, which lends an estimated $ 1.78 billion to Anil Ambani’s Reliance Communications (RCom), has filed a case in the Mumbai Bench of the National Corporate Law Tribunal (NCLT) against RCom after defaulting in the debt payment by the company.
Banking sources said that Indian lenders can object to the China Development Bank’s petition because they are already working on RCOM with a debt settlement plan.
This move by the Chinese bank has raised just a few weeks before the Indian debtors decided to convert RCom’s debt of Rs 45,700 crore into equities. This can lead to a legal scandal in the case.
According to the Lending and Bankruptcy Code, when a company is taken to the NCLT and the court finds in the petition, then it is appointed by the disposal professionals and the company’s board of directors is suspended. After this, the settlement professionals decide on the company’s auctioning process.
RCom spokesperson refused to comment. However, insiders in the company said that they have not received any instructions from China Development Bank or NCLT.
Earlier, China Development Bank had filed a petition against the merger of RCom-Aircel in May and sought a blueprint for how the company would pay its debt. However, the RCom-Aircel merger deal could not be reached, after which RCOM withdrew the merger petition with NCLT.