Reliance Communications shares tank nearly 4.5% amid reports of China bank filing insolvency case
The telecom group said it had not received any notice regarding a case filed by the China Development Bank under the Insolvency and Bankruptcy Code.
Reliance Communications’s shares were down by nearly 4.5% around 12.45 pm on Tuesday after reports that the telecom group’s largest creditor, China Development Bank, had filed a case against it under the Insolvency and Bankruptcy Code.
Media reports on Monday had said that the China Development Bank, which had lent nearly $1.78 billion (approximately Rs 11,000 crore) to Reliance Communications had filed an insolvency case at the National Company Law Tribunal in Mumbai.
In September, Ericsson’s Indian subsidiary had filed insolvency petitions against Reliance Communications and two of its companies to recover unpaid dues of Rs 1,150 crore. Karnataka-based Manipal Tech has also claimed dues of Rs 2.74 crore from the telecom company.
Reliance Communications, however, on Monday evening, issued a statement that it has not been served any notice of the reported petition filed by the Chinese bank.
The firm’s spokesperson said that the company is engaged through the joint lenders forum with all its lenders for a successful resolution of the strategic debt restructuring process, and added that the China Development Bank has also been actively participating in the forum.
“The company is therefore, surprised by the untimely and premature action of the China Development Bank of filing an application at NCLT,” the spokesperson said. “The company continues to remain engaged with all lenders, including the China Development Bank, and is confident and committed to a full resolution with the support of all the lenders.”