China Development Bank files insolvency suit against RCom

Telco defaulted on $1.78-billion loan it took from China Development Bank

China Development Bank, which lent close to $1.78 billion to Reliance Communications (RCom), has filed an insolvency suit at the National Company Law Tribunal’s (NCLT’s) Mumbai bench after it defaulted on loans. 

Indian lenders would oppose the China Development Bank’s petition as they are already working on a debt resolution plan with RCom, said a banking source. The Chinese bank’s move comes weeks before Indian lenders are set to take a call on conversion of the Anil Ambani-owned firm’s debt worth Rs 45,700 crore into equity, and could lead to legal complications. 

According to the Insolvency and Bankruptcy Code (IBC),