Doha Bank plea of Rel Infratel priority payment upheld

The National Company Law Tribunal (NCL T) has upheld the petition of Doha Bank seeking priority payment for the financial creditors of Reliance Infra tel which will lead to a round Rs 3,515 cr ore recovery for the lenders, according to a source aware of the development.

The payment has to be made from a payment of about Rs 4,400 cr ore realised from sale of assets to a Reliance Industries Ltd ( RIL) subsidiary through NC LT-driven debt resolution process.

According to the sour ce, State Bank of India will receive Rs 728 crore, Mahima Mercantile Rs 514 crore, SC Lowy Rs 51 1 cr ore, VTB Capital PLC Rs 511 cr ore, Doha Bank 40 9 cr ore, Emirates NBD Rs 322 cr ore, ICBC Rs 278 crore and Standard Chartered Bank will get Rs 242 crore.

"Reliance Infra tel will also g et Rs 455 cr ore towards the equity and Working Capital needs fr om RIL subsidiary. R est of the amount will be distributed among operational creditors, employees etc ," the source said.

NCLT, Mumbai had approved the Reliance Infra tel resolution plan on December 3, 2020 in favour of aR IL subsidiary -- Reliance Projects and Property Management Services Ltd.

The tribunal had also noted that the distribution of proceeds to th e financial creditors was subject to the disposal of Doha Bank's application.