[ By Bobby Anthony ]Doha Bank has moved the National Company Law Tribunal (NCLT) seeking to protect its rights over proceeds generated from any prospective resolution plan for Reliance Infratel Ltd.The bank stated that it may receive a lesser percentage of the recoverable amount as its voting rights in the debt-ridden company’s committee of creditors were reduced.It may be recalled...
Doha Bank has moved the National Company Law Tribunal (NCLT) seeking to protect its rights over proceeds generated from any prospective resolution plan for Reliance Infratel Ltd.
The bank stated that it may receive a lesser percentage of the recoverable amount as its voting rights in the debt-ridden company’s committee of creditors were reduced.
It may be recalled that Reliance Infratel had issued certain guarantees in favor of another Anil Ambani Group company Reliance Communications Ltd.
However, the telecom company started defaulting on its payment obligations, after which the lenders invoked guarantees issued by Reliance Infratel and converted them into debt.
That gave the lenders to RCom voting rights in Reliance Infratel’s CoC and bringing down the Doha Bank-led consortium’s voting rights from 55% to 15%.
Reliance Infratel was dragged into insolvency by the Indian arm of the Swedish telecom equipment maker Ericsson after it defaulted on its payment obligations.
The Mumbai bench of the NCLT had admitted the insolvency petition in May 2018. It had stayed the resolution process in June 2018 and again vacated it in April 2019.