31 overseas, Indian banks to oppose China Development Bank at NCLT: RCOM

In a Reliance Communications (RCOM) Committee of Creditors meeting on Wednesday around 30 lenders, both foreign and Indian, have voted to oppose the petition of China Development Bank (CDB) before National Company Law Tribunal (NCLT), a company statement said here on Thursday.

"At a Committee of Financial Creditors Meeting on November 29, 2017, a majority of Reliance Communications' lenders, foreign and Indian, aggregating 31, decided to oppose China Development Bank's (CDB) insolvency petition against RCOM before the National Company Law Tribunal, Mumbai," the statement said.

"The lenders also decided to appoint J Sagar Associates as their legal counsel to oppose the said CDB petition at the admission stage itself," it added.

According to industry sources, banks are opposing the CDB move as passing of an insolvency order on RCOM will force them to provision for at least 50 per cent of debt in their books with immediate effect, upwards of Rs 25,000 crore.

It will also derail the efforts made on the asset monetization front, which are all in the final stages, sources said.

--IANS

ag/vm