“With regard to this request from the Chinese banks, the loan for which the procedure was initiated did not concern a personal loan but a business loan which the telecommunications company made use of,
, in the normal course of business eight years ago in 2012, a consortium of 3 Chinese banks – CDB, ICBC and C-EXIM – for global refinancing, “Ambani said at Tuesday’s AGM. RCom , which is now bankrupt, is in the midst of insolvency proceedings.
On May 22, a UK court ordered Ambani to pay $ 717 million (Rs 5,448 crore) to three Chinese banks within 21 days, after ruling that a personal guarantee disputed by the man from Indian affairs was binding. During the hearings, the court ruled that it did not accept Ambani’s defense that his net worth was close to zero or that his family would not help him if things got really tough for the 100 million payment. of dollars.
However, Ambani had consistently defended that there was no personal guarantee signed by him.
“The guarantee on the basis of which the claim was made was certainly not signed by him. In fact, he had only signed a power of attorney limited to the execution of a non-binding comfort letter to Chinese banks. His defense, however, was ruled out by British courts for his inability to personally deposit a sum of $ 100 million, “the chairman of Reliance Power said on Tuesday.
The former head of RCom is also at odds with other lenders. Recently, the SBI also asked the insolvency court to recover over Rs 1,200 crore from Ambani under the personal guarantee clause of the bankruptcy law.
“Regarding the procedure filed by SBI, he stressed that it also did not concern a personal loan but resulted from a guarantee given for a loan that was used by Reliance Communications and Reliance Infratel, in 2016 to repay the debts of Chinese banks and certain other Indian banks, ”Ambani said.
He reassured other shareholders that none of these potential liabilities, if any, would have the slightest impact on the operations of the company, Reliance Infrastructure Ltd, or its future prospects.
RCom, in debt of Rs 46,000 crore, is awaiting the approval of the insolvency court on the resolution plan in which its assets are to be sold to UVARCL and Reliance Jio.