Anil Ambani's Shipyard Risks Insolvency as Banks Spurn Debt Plan
- Lenders unwilling to wait longer, court to hear case Sept. 4
- Warship and submarine maker’s borrowings at 70 billion rupees
Reliance Naval and Engineering Ltd. workers walk on the deck of a ship at the RNEL shipyard at Pipavav.
Photographer: Sam Panthaky/AFP via Getty Images
This article is for subscribers only.
The shipyard controlled by embattled Indian tycoon Anil Ambani is facing the prospect of bankruptcy after failing to get creditors’ approval for restructuring 70 billion rupees ($970 million) of debt, people familiar with the matter said.
India’s bankruptcy tribunal will consider putting Reliance Naval & Engineering Ltd. in bankruptcy on Wednesday as no new repayment plan was submitted after lenders led by IDBI Bank Ltd. rejected an earlier offer in July, the people said, asking not to be named as the information is not public. The court can also defer the decision on bankruptcy.