Chinese Banks to Acquire Big Stakes in Anil Ambani’s RCom
In the middle of India-CHina rift and turbulent strategic relationship, reports have come that leading Chinese banks will be getting big stakes of Rs 7,000 crore or 30 per cent in the Reliance Communications Limited (RCom) and Reliance Telecom Limited (RTL) resolution while the Department of Telecommunications (DoT) will get zero proceeds.
The Government of India (GoI) and the DoT against the AGR dues of Rs 30,000 crore would get zero proceeds.
According to banking sources, Chinese banks namely China Development Bank, China Exim Bank and ICBC will get the lion’s share of 30 per cent or Rs 7,000 crore in the RCom, RTL and RITL resolution plan, while DoT will get zero proceeds.
NCLT Mumbai will hear the resolution plan of RCOM, RTL and RITL on Friday.
The Committee of Creditors (CoC) is said to have decided to give zero proceeds to DoT out of the total proceeds of Rs 23,000 crore from the resolution plan.
While Chinese banks get the largest share of Rs 7,000 crore at 30 per cent, other foreign lenders will get Rs 2,300 crore or a share of 10 per cent. State Bank of India (SBI) and other Indian Banks will get Rs 13,000 crore from the proceeds..
While the lenders will get Rs 23,000 crore, DoT is an operational creditor. As per the Insolvency and Bankruptcy Code (IBC), operational creditor gets zero proceeds as the secured lenders first get the amount against the total dues.
The Department of Telecommunications and the Government of India have objected to the resolution plan of RCom and RTL.