Bad borrowing habits come home to roost in India

Reliance Communications

27/05/2020 02:36

(The author is a Reuters Breakingviews columnist.  The opinions
expressed are her own.)
    By Una Galani
    MUMBAI, May 27 (Reuters Breakingviews) - A London court
ordered Anil Ambani, the brother of Asia’s richest man, to pay
$700 mln to Chinese banks led by ICBC over a personal guarantee
on a loan. The case is indicative of the unorthodox funding
practices used by the country’s tycoons. It should help clean up
their acts.
    Full view will be published shortly.
    On Twitter https://twitter.com/ugalani

    CONTEXT NEWS
    - India’s Anil Ambani was ordered by a London court on May
22 to pay about $717 million to his Chinese creditors. 
    - Industrial and Commercial Bank of China, China Development
Bank and the Export-Import Bank of China argued that Ambani
failed to honour a personal guarantee used to support a $925
million loan to Reliance Communications agreed in 2012. 
    - The final amount owed will be assessed based on the
outcome of the company’s ongoing insolvency proceedings in
India. 
    - Ambani has consistently denied having authorised anyone to
execute any guarantee on his behalf, a spokesperson for the
businessman said in an emailed statement. 
    - For previous columns by the author, Reuters customers can
click on  GALANI/   
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BREAKINGVIEWS - Ericsson reaches for India’s new creditor
weaponry     urn:newsml:reuters.com:*:nL8N29T201
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 (Editing by Jeffrey Goldfarb and Sharon Lam)
 ((una.galani@thomsonreuters.com;  Reuters Messaging:
una.galani.thomsonreuters.com@reuters.net))