Reliance Group Chairman Anil Ambani tells UK court his ‘net worth is zero’.
Reliance Group Chairman Anil Ambani has been directed to pay $100m within six weeks towards a conditional order granted to three Chinese banks pursuing the recovery of over $680m owed to them as part of a loan agreement by a UK court on Friday.
Three Chinese banks - Industrial and Commercial Bank of China, China Development Bank and the Export-Import Bank of China are suing Anil Ambani for or more than $700m, including interest for defaulting on a loan they gave Reliance Communications (RCom) in February 2012, which RCom defaulted on. The banks claim Ambani provided a personal guarantee for the loan, but Ambani disputes this.
The Reliance Group indicated that it plans to appeal against the ruling, which will involve a process of seeking permission to appeal.
Meanwhile, a spokesperson said that the order pertained to an alleged personal liability of Mr Ambani and will have no bearing on the operations of the Reliance Infrastructure Limited, Reliance Power Limited and Reliance Capital Limited. [ET]
Former billionaire Anil Ambani, once the sixth richest man in the world declared to a UK court that his "net worth was zero" and that he was bankrupt.
"The value of Mr Ambani's investments has collapsed since 2012. The Indian telecom sector in particular has been dramatically hit by the Indian government's change of policy in relation to the grant of spectrum," noted his defence.
"Whereas Mr Ambani's investments were worth more than $7bn in 2012, they are now worth $89m, and his net worth is zero once his liabilities are taken into account... Quite simply, he was a wealthy businessman, now he is not," said his barrister Robert Howe. [TOI]
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