InvestorQ : Can you tell me about the latest NCLT ruling on the Doha Bank versus Reliance Infratel issue and what does it imply?
swati Bakhda made post

Can you tell me about the latest NCLT ruling on the Doha Bank versus Reliance Infratel issue and what does it imply?

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Sam Eswaran answered.
8 months ago
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Earlier in this week, the National Company Law Tribunal or the NCLT upheld the petition filed by Doha Bank of the Middle East resulting in 100% recovery for financial creditors of Reliance Infratel to the tune of Rs.3,515 crore. Doha Bank, it may be recollected, had filed an application against RCOM Corporate Guarantee Holders seeking priority payment for financial creditors from proceeds of its resolution.

Reliance Jio had acquired assets of Reliance Infratel under NCLT resolution. At that time some of the group companies of RCOM that had guarantees also staked a claim to the money. Doha Bank had then contended that direct lenders to Reliance Infratel had first rights over proceeds of resolution plan for the corporate guarantee holders. Now NCLT has upheld the Doha Bank plea. The plan allows distribution of Rs 4,400 crore to the lenders.

Apart from Doha Bank, even SBI Bank is likely to received nearly 20% of the sum as payment for loans given to Reliance Infratel.

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