China Development Bank has filed the insolvency petition against the Reliance Communication as per the sources. China development bank has claimed the petition against reliance communication for the bankruptcy and insolvency case. As per the reports, the Indian wireless company owes around one-fifth of its seven billion dollar debt to the China Development Bank that organised a loan for the billionaire Anil Ambani organisation in 2011. However, the operational creditor like Ericsson India Private Ltd. and Tech Mahindra Ltd. have previously approached the India’s National Company Law to start insolvency proceedings against Reliance communications.
Now, this new petitions by the China development bank have come as the biggest challenge for the Anil Ambani. After the media reports on the China Development Bank petition on Reliance Communications Ltd., for insolvency and bankruptcy charges the shares of the company fell down sharply.
It is reported that the China bank has filed the insolvency petition against Reliance communications before the Mumbai bench of the NCLT (National Company Law Tribunal). However, the Reliance communications said that they have not received any notice of the application from the China development bank. And the comment by the reliance communication immediately denied by the CDB. This petition over insolvency and bankruptcy case led to the trading down shares to 4.1 percent from 9.4 percent.