UK court order to pay 3 China banks: Anil Ambani denies giving any personal guarantee

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June 24, 2020 1:15 AM

Reliance Communications in the normal course of business had in 2012 borrowed from three Chinese banks — CDB, ICBC and C-Exim.

Ambani said that three Chinese banks had made their false claim based on alleged personal guarantees that were never signed by him.Ambani said that three Chinese banks had made their false claim based on alleged personal guarantees that were never signed by him. (File image)

Reliance Group chairman Anil Ambani on Tuesday, while addressing the annual general meeting of Reliance Power, said that cases filed by the State Bank of India (SBI) and three Chinese banks were not related to personal borrowings but were for corporate loans. Ambani said that three Chinese banks had made their false claim based on alleged personal guarantees that were never signed by him.

Addressing shareholders, he said, “In fact, I had only signed a power of attorney limited to executing a non-binding letter of comfort to the Chinese banks.” Reliance Communications in the normal course of business had in 2012 borrowed from three Chinese banks — CDB, ICBC and C-Exim.

A UK Court had last month asked Anil Ambani to repay $716 million to three Chinese banks. In his defense, Ambani said had been shut out by the UK courts on his inability to personally deposit a sum of $100 million. In India, SBI had moved National Company Law Tribunal (NCLT) to recover Rs 1,200 crore from Anil Ambani.

Speaking on the claims of SBI, Ambani said, “This does not relate to any personal borrowing, but arose out of a guarantee given for a loan which was availed by RCom and Reliance Infratel.”

He also said that the final amount owed to Chinese banks would be assessed based on the outcome of the RCom insolvency resolution process, as per the UK court’s order. Ambani also mentioned that he would avail of all available legal remedies in India to protect his interest. “None of these potential liabilities if any would have the slightest bearing whatsoever on the operations of the company..,” he said, assuring the shareholders.

The Reliance Group chairman also pinned hope on the successful resolution of RCom. “A significant proportion, if not the whole, of the said debts will stand discharged and all these matters satisfactorily resolved,” he said. The RCom committee of creditors had earlier approved a resolution plan of UV Asset Reconstruction Company (UVARC) and Reliance Jio. However, NCLT is yet to provide final approval for the RCom resolution plan.

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