Anil Ambani's Reliance Innoventures admitted for insolvency proceedings

New Delhi: Anil Ambani company, Reliance Innoventures, has been admitted for insolvency proceedings by national company law tribunal (NCLT) after New York-based financier JC Flowers approached the court claiming the company had defaulted on its debts, according to details in a court order the contents of which were reviewed by ET.

JC Flowers Asset Reconstruction Company, which took over Yes Bank's bad loan portfolio worth ₹48,000 crore in December, inherited loans made by the bank to the Ambani company in 2015 and 2017, as per the court documents. The documents show that term loans and non-convertible debentures of Reliance Innoventures worth ₹1,000 crore were assigned to JC Flowers by Yes Bank.

JC Flowers claims the Ambani company defaulted on interest payments worth ₹100 crore.


JC Flowers and Reliance Group did not respond to ET's emails.

Reliance Innoventures countered JC Flowers assertions at NCLT claiming there was no default.

The Anil Ambani company claimed that the value of the collateral granted to the financier was more than sufficient to cover its outstanding debts. It claimed that the untimely fire sale of shares of four Reliance Group companies by the creditor had caused volatility in the stock prices of those companies.

Reliance Innoventures claimed shares of Reliance Infrastructure, Reliance Power, Reliance Capital, and Reliance Home Finance pledged as collateral for the loans taken by the holding company was worth ₹2,598 crore just twelve months prior to the fire sale in 2019. The shares were sold for ₹142 crore by Yes Bank before JC Flowers acquired the bank's bad loan portfolio.

Reliance Innoventures also claimed that JC Flowers did not have authorization to file the petition.

While admitting JC Flowers' petition the NCLT cited that financial debt and default had both been established by the petitioner.