Anil Ambani claims to have repaid Rs 35,400 cr debt in 14 months

Anil Ambani claims to have repaid Rs 35,400 cr debt in 14 months

By / Business News / Wednesday, 12 June 2019 06:55

Anil Ambani, the chairman of the debt-laden Reliance group that owes around Rs 1 lakh crore to lenders, on Tuesday said the group has paid back Rs 35,400 crore of debt during the past 14 months to May through asset sales, even as it faced liquidity drought.

In a call with the media, he exuded confidence that the group will meet all its debt obligations through more asset sales.The statement comes amidst a massive fall in the seven listed entities of the group, which have lost more than 65 per cent of its value since January this year.

"The repayment comprised principal repayments of Rs 24,800 crore and interest payments of Rs 10,600 crore between April 2018 and May 2019," he said, adding repayments included debt servicing by Reliance Capital, Reliance Power and RInfra and their affiliates.

That apart, Reliance Capital has divested majority stake in the radio business for Rs 1,200 crore to the Jagaran group. Ambani said these repayments, aggregating to Rs 35,400 crore, were made without any additional liquidity support from any lender.

He said the group is fully committed to meet all its debt obligations in a timely manner by more asset monetisation some of which are at various stages of completion.

It can be noted that the group could not complete its spectrum sale to Reliance Jio though an agreement for around Rs 23,000 crore was signed last year with his elder brother Mukesh Ambani, who had in April bailed him out with a Rs 485 crore grand to avoid a contempt of the Supreme Court that arose out of a payment dispute with Ericsson, an RCom vendor.

The two major asset sales the group could conclude during the past two years were sale of RPower's distribution business in Mumbai to Adani group for around Rs 18,000 crore and a stake dilution in the mutual fund business for Rs 6,000 crore to the joint venture partner Nippon group of Japan. The group has also put its insurnace business on the block but a deal is awaited.

At the group level it owes around Rs 1 lakh crore to lenders, including Rs 49,000 crore that the bankrupt telecom arm owes to lenders. The group took Rcom to the NCLT a few months back.

"During this entire period, all types of lenders banks, mutual funds, insurance companies, provident funds and NBFCs provided no additional liquidity to any of our entities," he said, adding various group entities are to get Rs 30,000 crore in claims.

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