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Home >Companies >News >NCLT upholds Doha Bank plea to recover 3,515 cr dues of Reliance Infratel's lenders

NCLT upholds Doha Bank plea to recover 3,515 cr dues of Reliance Infratel's lenders

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NCLT upholds Doha Bank plea to recover 3,515 cr Reliance Infratel's dues

The payment has to be made from a payment of about 4,400 crore realised from sale of assets to a Reliance Industries Ltd ( RIL) subsidiary through NCLT-driven debt resolution process

New Delhi: The National Company Law Tribunal (NCLT) has upheld the petition of Doha Bank seeking priority payment for the financial creditors of Reliance Infratel which will lead to around 3,515 crore recovery for the lenders, according to a source aware of the development.

New Delhi: The National Company Law Tribunal (NCLT) has upheld the petition of Doha Bank seeking priority payment for the financial creditors of Reliance Infratel which will lead to around 3,515 crore recovery for the lenders, according to a source aware of the development.

The payment has to be made from a payment of about 4,400 crore realised from sale of assets to a Reliance Industries Ltd ( RIL) subsidiary through NCLT-driven debt resolution process.

The payment has to be made from a payment of about 4,400 crore realised from sale of assets to a Reliance Industries Ltd ( RIL) subsidiary through NCLT-driven debt resolution process.

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According to the source, State Bank of India will receive 728 crore, Mahima Mercantile 514 crore, SC Lowy 511 crore, VTB Capital PLC 511 crore, Doha Bank 409 crore, Emirates NBD 322 crore, ICBC 278 crore and Standard Chartered Bank will get 242 crore.

"Reliance Infratel will also get 455 crore towards the equity and Working Capital needs from RIL subsidiary. Rest of the amount will be distributed among operational creditors, employees etc," the source said.

NCLT, Mumbai had approved the Reliance Infratel resolution plan on December 3, 2020 in favour of a RIL subsidiary-- Reliance Projects and Property Management Services Ltd.

The tribunal had also noted that the distribution of proceeds to the financial creditors was subject to the disposal of Doha Bank's application.

Reliance Infratel had issued certain guarantees in favour of Reliance Communications (RCom)

and Reliance Telecom Ltd (RTL)lenders but the lenders of these two companies invoked guarantees when they defaulted and converted them into debt.

Doha Bank’s contention was that the direct lenders of Reliance Infratel had a first right over the proceeds from the company’s resolution plan, and not the corporate guarantee holders of RCom and RTL.

NCLT in its order on Tuesday upheld Doha Bank's plea, thus paving the way for 100 per cent recovery for the financial creditors of Reliance Infratel, and the implementation of the Resolution Plan is expected to be complete by March 31, 2021, the source said. PTI PRS ANZ ANU ANU

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