InvestorQ : Will the Delhi High Court order come as a relief for Anil Ambani on the insolvency proceedings?
vaishnavi mhatre made post

Will the Delhi High Court order come as a relief for Anil Ambani on the insolvency proceedings?

Answer
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vidhya Laxmi answered.
1 month ago


I am not sure if it comes as a relief for Anil Ambani but it surely gives some short term respite. Had the High Court rejected his plea, then Anil Ambani may have had a real problem staving off personal bankruptcy, to that extent it is good news for him.

Remember, the Delhi High Court has only halted insolvency proceedings against the ADAG chairperson, initiated by SBI. However, the court barred Anil Ambani from disposing of any of his assets without the permission of the Court.

The Delhi HC order is in response to a plea filed by Anil Ambani regard the appointment of a resolution professional (RP) in the Rs.1200 crore loan taken by RCOM. At that point, Anil Ambani had stood a personal guarantor to the loan, which triggered this situation.

The Resolution Professional was appointed by NCLT at the request of SBI, which had extended this loan to ADAG group companies back in 2016. However, RCOM had gone into bankruptcy in 2017 due to mounting dues and falling telecom revenues.

RCOM is currently under insolvency the process is currently held up due to legal questions over spectrum sale raised by the Supreme Court. This HC order gives some breathing room for Anil Ambani as the immediate threat of personal bankruptcy is not there for Anil.