Wednesday, March 3, 2021

Doha Bank plea on resolution of Reliance Infratel upheld by NCLT

 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 Rs 3,515 crore recovery for the lenders, according to a source aware of the development.


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 Rs 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 Rs 4,400 crore realised from sale of assets to a Reliance Industries Ltd ( RIL) subsidiary through the NCLT-driven debt resolution process.

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

"Reliance Infratel will also get Rs 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.

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