Doha Bank, one amongst the financial creditors to Reliance Communication’s subsidiary Reliance Infratel, moved to the National Company Law Tribunal seeking protection of its rights over the earnings generated from Reliance Infratel’s resolution plan.
Doha Bank along with other three foreign lenders claimed that their voting rights in subsidiary Reliance Infratel were reduced to 15% from 50% after the local lenders invoked bank guarantees of Rs 8,000 crores issued by the company in favor of Anil Ambani Group Reliance Communications.
Advocate Prateek Seksaria appearing for Doha Bank said the lender and three other foreign banks had lent Rs 1,400 crore to Reliance Infratel and Doha Bank alone lent Rs 408.81 crore.
In committee of creditors, the claims were admitted and a resolution professional was appointed. The lenders voted in favor of appointing Deloitte as the resolution professional.
On Tuesday, NCLT repeatedly said that Doha Bank’s current voting percentage won’t affect its future entitlement on the profits from Reliance Infratel’s resolution till the tribunal gives its final orders though it wouldn’t put stay committee of creditors.
Reliance Infratel was dragged into insolvency originally by the Swedish telecommunication system 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.