Anil Ambani dragged to court for $680 million unpaid loan
Three Chinese banks are suing the brother of Asia’s richest man in a London court for failing to pay back $680 million in defaulted loans.
The Industrial & Commercial Bank of China Ltd., China Development Bank and the Export-Import Bank of China agreed to loan $925.2 million to Anil Ambani’s firm Reliance Communications Ltd. in 2012 on condition that he provide a personal guarantee, ICBC’s lawyer Bankim Thanki told the court. Some repayments were made by the wireless carrier but in February 2017, it defaulted on its payment obligations.
The embattled Indian tycoon says that while he agreed to give a non-binding “personal comfort letter,” he never gave a guarantee tied to his personal assets. He’s the brother of Mukesh Ambani, who’s worth $56 billion and is the wealthiest man in Asia and 14th richest in the world. Anil, on the other hand, has seen his personal fortune dwindle over recent years, losing his billionaire status.
Anil Ambani was chairman of Reliance Communications, which fell into administration earlier this year. His wider telecommunications-to-infrastructure empire Reliance Group has continued to struggle under a mountain of debt. As of July, four of its biggest units, excluding the phone company, had about 939 billion rupees ($13.2 billion) of debt, Bloomberg reported in September.
Anil Ambani was caught up in a similar case earlier this year, when India’s Supreme Court threatened him with prison after Reliance Communications failed to pay to pay 5.5 billion rupees to Ericsson AB’s Indian unit. The judges gave him a month to find the funds, and his brother, Mukesh, stepped in to make the payment.
The brothers’ relationship has been fraught since their father’s death left behind a vast empire that was split between them. While Mukesh’s oil & petrochemicals businesses have flourished, Anil’s assets dwindled.
According to a court filing, Anil went to Beijing in the winter of 2011 to negotiate the loan with ICBC’s former Chairman Jiang Jianqing directly. The lenders sought a share pledge before granting the loans, but the legal dispute centers on whether Ambani or one of his associates went on to provide a personal guarantee as security.
Hasit Shukla, Reliance’s commercial & treasury head, signed a personal guarantee on Ambani’s behalf by power of attorney when the loan was set up seven years ago, Thanki said. But Ambani didn’t give Shukla the authority to sign for him, making the guarantee non-binding, his lawyer Robert Howe said in written submissions.
Industrial & Commercial Bank is the sole claimant in the London case, and is representing itself and the other two lenders.
In Thursday’s court hearing, ICBC’s lawyers asked Judge David Waksman for an early ruling or a conditional order requiring Ambani to pay into court the unpaid sum and interest under the facility agreement. Ambani has declined to give any evidence of his wealth, they said.
译文来源：三泰虎 http://www.santaihu.com/48764.html 译者：Joyceliu
This time the Family bonding is valued at 680 billion . Will Mukesh again extend the same brotherly affection based on Family Values and rise to the occasion to bail out Anil, if the verdict is adverse. Need to Wait and Watch
There is no need for any billionaires in India one less is a good thing others should be taxed into being millionaires
i rightly dont respect ambanis.
Anil is getting even farther from being presented as a businessman , leave that ,he is now fighting for survival
Mr Mukesh ambani may or will bail Mr Anil ambani from chinese lender also as was the case with Ericsson..
S K Mandal
Mr. Anil Amvbani''s focus from the very beginning has been to ''beat Mukesh'' in making money and not managing his money or businesses for effective growth. May be luck has not been in his favour, but it is not luck alone that works. Hard and intellegent work does.....
Mukesh Ambani helped Anil Ambani by buying his assets when probably there were no buyers. It was not a gift or loan
Anil Ambani''s bad time is continuing....
Where is all this money? A forensic audit has to be carried out by Enforcement Directorate to check if this money found it''s route to some tax heaven countries where Mr. Anil may be having some accounts.
All companies of Anil Ambani are facing serious crisis.