Another Anil Ambani co goes into insolvency
Before transferring the loan to JC Flowers, YES Bank had sold shares of these four companies in 2019 and the value given by the company had been given 12 months prior to this share sale
NCLT has given approval to start bankruptcy process against another company of Anil Ambani group. We’re talking about Reliance Innoventures. Due to the complaint of New York’s financing company JC Flowers, approval has been given to start the bankruptcy process against the company.
JC Flowers has claimed in its application in NCLT that Reliance Innoventures has defaulted on its loan payment. In fact, JC Flowers ARC had bought Yes Bank’s Rs 48,000 crore bad loan portfolio in December 2022 and according to court documents, these loans also include loans given by the bank to Reliance Innoventures in 2015 and 2017.
Term loans and NCDs of this company were transferred to JC Flowers ARC, whose value was Rs 1,000 crores and JC Flowers ARC claims that Reliance Innoventures has defaulted on interest payment of Rs 100 crores on this loan. On the other hand, Reliance Innoventures, replying to JC Flowers, said that the value of the shares held as collateral in the group’s four companies Rel Infra, Rel Power, Rel Capital and Rel Home Finance was Rs 2,598 crores.
Before transferring the loan to JC Flowers, YES Bank had sold shares of these four companies in 2019 and the value given by the company had been given 12 months prior to this share sale. According to Reliance Innoventures, the value of the pledged shares is sufficient to pay off the loan and JC Flowers ARC has no locus standi to file the application but NCLT has accepted the application.
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