Anil Ambani, younger brother of India’s richest man Mukesh Ambani, is all over the news again after staying away from the media limelight for years. Once the sixth richest man in the world with a net worth of over Rs 1.83 lakh crore, Anil Ambani declared bankruptcy before a UK court in February 2020. However, Mukesh Ambani’s brother is now making a strong comeback as shares of his firm Reliance Power have jumped over 120% in the past year. The stock prices of Reliance Retail saw a significant rise as the company announced that it has settled the debt with ICICI Bank. For those who are unaware, Anil Ambani’s Reliance Power has settled the debts owed to ICICI Bank, Axis Bank, and DBS Bank. Anil Ambani is now planning to head towards Rs 2100 crore debt settlement with JC Flowers Asset Reconstruction Company, a report by Economic Times suggests.
To recall, Anil Ambani’s Reliance Infrastructure entered into a standstill agreement with JC Flowers ARC in January. According to the agreement, JC Flowers ARC will not take legal action against Anil Ambani’s company until the end of March 2024, giving enough time to arrange funds to settle debt.
The original lender to Anil Ambani’s companies was Yes Bank, which transferred its Rs 48,000-crore distressed loan book to JC Flowers ARC. That also included loans given to Reliance Infrastructure and Reliance Power.
A senior executive from a commercial bank revealed to Economic Times that Anil Ambani led Reliance Power aims to be a debt-free company by the end of this fiscal year. “The only debt on its books will be the working capital loan from IDBI Bank” the executive added.
