Why is Anil Ambani being sued by 3 Chinese banks? 5 things to know about the beleaguered brother of Asia’s richest man, Mukesh Ambani
He may be the only brother of Asia’s richest man, but former billionaire Anil Ambani is facing legal troubles to the tune of US$680 million
Right now this Reliance Group chairman’s net worth is, relatively speaking, down in the dumps. It had fallen to US$109 million as of this July. And he wasn’t just once a billionaire – he was once the sixth richest person on the planet.
Three Chinese banks – the Industrial and Commercial Bank of China (ICBC), China Development Bank and the Export-Import Bank of China – are collectively suing him in London for failing to pay back US$680 million in defaulted loans.
Partial repayments were made but by early 2017, the carrier making payments defaulted on its obligations.
His response is that he never gave a guarantee tied to his personal assets, which simply do not cover this debt. He claims the debt is tied to “the company to whom the loans were being extended”, as Ambani’s lawyer Robert Howe said in court.
So, what do we know for sure?
1. He’s a wealth destroyer for shareholders
Ambani has proven himself very good at decimating shareholder wealth, perhaps the most effective in the last 100 years, with a combined group market capital decline of 90 per cent since he formed the breakaway Reliance Group in 2006.
2. His businesses are under a mountain of debt
Reliance Communications, of which Ambani is chairman, fell into administration this year. The Reliance Group remains in great debt. His four biggest businesses have around US$13 billion in debt.