India-China Clash: Anil Ambani's Asset Chase
The pursuit of supposed former billionaire Anil Ambani’s asset by Chinese banks could face obstacles as an Indian court has requested a moratorium over the recovery of more than $700 million.
The Delhi High Court has requested a moratorium on recovery from any related asset sales by the troubled Ambani – once the sixth-richest person in the world who earlier this year declared bankruptcy after liabilities.
The asset sales relate to a London court ruling in May in favor of three Chinese banks which won an order for a $716 million recovery over default loans.
According to the case, the trio of Chinese banks had provided funding to Ambani’s Reliance Communication in 2012 based on his personal guarantee but has since failed to receive any payments.
Chinese Bank Claims
The State Bank of India is behind the case to step into the retrieval by the three Chinese banks, adding that Indian lenders exposed to Ambani could receive nothing post-recovery if U.K’s court orders are successfully executed, though it did not name the trio.
Separately, the State Bank of India has also filed a bankruptcy case against Ambani earlier this year which has also been halted by a court order instructing the ex-billionaire not to sell his assets. Ambani is requesting that the Chinese banks be included in his challenge against the bankruptcy case.
Ambani is the younger son of business tycoon and Reliance Industries founder Dhirubhai Ambani. Following the patriarch’s death, Ambani underwent a high-profiled conflict with older brother Mukesh Ambani over Reliance’s split and inherited interests in telecom, entertainment, financial services, power and infrastructure before the eventual downfall.
