Mumbai, Feb 8: Anil Ambani, the brother of Asia’s richest man has pleaded poverty in his dispute with three Chinese banks seeking $680 million in defaulted loans.
“The value of my investments has collapsed,” Anil Ambani said, according to a court filing by the banks in a London lawsuit.
“The current value of my shareholdings is down to approximately $82.4m and my net worth is zero after taking into account my liabilities. In summary, I do not hold any meaningful assets which can be liquidated for the purposes of these proceedings.”
The lawsuit was filed by three state-controlled Chinese banks which argue that they provided a loan of $925 million to Ambani’s Reliance Communications Ltd. in 2012 with the condition that he personally guarantee the debt. The comments were disclosed on Friday as Ambani sought to avoid depositing hundreds of millions of dollars with the court ahead of a trial.
The embattled Indian tycoon says that while he agreed to give a non-binding “personal comfort letter,” he never gave a guarantee tied to his personal assets -- an “extraordinary potential personal liability.”
The 60-year-old is the brother of Mukesh Ambani, who’s worth $56.5 billion and is the wealthiest man in Asia. Anil, on the other hand, has seen his personal fortune dwindle over recent years, losing his billionaire status. His Reliance Communications filed for bankruptcy last year.
The banks asked Judge David Waksman to force Ambani to put up $656 million into the court’s account.
Representatives for Ambani’s Reliance Group said they couldn’t immediately comment. They said the group will issue a statement once the court issues the final order.
Ambani’s lawyer, Robert Howe, said the court shouldn’t order his client to make a payment he can’t make. The tycoon argues that an order requiring him to do so would hinder his ability to defend himself in the case, Howe said.
“There’s no evidence of some giant pot of gold that he can pull $1 million, let alone $10 million, let alone $100 million,” Howe said.
Bankim Thanki, an attorney representing Industrial & Commercial Bank of China Ltd., China Development Bank and the Export-Import Bank of China, said in a filing that Ambani’s statements are “plainly a yet further opportunistic attempt to evade his financial obligations to the lenders.”
Ambani was caught up in another legal wrangle last year when India’s Supreme Court threatened him with prison after Reliance Communications failed to pay Rs 5.5 billion ($77 million) to Ericsson AB’s Indian unit. The judges gave him a month to find the funds, and his brother, Mukesh, stepped in just in time to make the payment.
Anil said in a filing that he recognized that the judge would want to know if he could satisfy any order to put up funds from outside resources, including his family.
“I can confirm that I have made enquiries but I am unable to raise any finance from external sources,” he said. Judge Waksman had said in an earlier ruling that he believed Ambani’s defence would be shown to be “opportunistic and false.”
Ambani’s lawyer told the judge that as a result of the comments the tycoon’s relatives were unlikely to lend any funds.
There is a “very substantial risk they will never get it back,” Howe said.
Comments
Hats off to the above teamwork
A wonderful selfless act. He must have been a compassionate person.
Oh, my heart breaks for the family. My family also had to make the decision to donate my niece's organs. For me personally it was one of the most healing things knowing she had saved so many lives but I do often wonder how/where these people are.
Selflessness - the stuff of real heroes.
As a recipient of a heart just over two years ago I am eternally grateful for those who make this decision. I can continue to be a son, a husband, and a father to two small children.
My brother passed unexpectedly on 24th February 2015, he too donated his organs. His selfless act has helped us, as a family to know he breaths through another & has assisted at least four other recipients & their families last year. We would love to reach out to the recipients on his 1yr memorial but understand the sensitivity for some and respect their privacy but it's hard.... I know it would mean the world to mum & dad to meet them & would greatly assist in their healing. I wish there was a 'tick box' option to opt in for communication between families.
My deepest condolences to his family and friends on his passing. Organ donation is a befitting gesture to honour this young man. With much love to you all at his difficult time.
Feel sorry for the man and his family...life is unpredictable.
RIP!!! You r a real hero buddy...
these idiots will construct green corridors with lot of potholes. do practical and proper work rather than bs talk
Why drones flying at low heights in some Specific colour can not be used for Organ Transportation?
At times the Mangalore Police makes us proud and kudos to the team that coordinated with the transplant team of one and all.
Very good. Appreciated the good work Police department
he has shown that humanity does still exist in India. well done,. May Almighty Bless him , this deceased Son as well as the patients who received the organs. Kudos ot medical fraternity along with police who made this happen
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