HomeBusinessAnil Ambani Is About to Sell $3.2 Billion Worth Assets To Fix...

Anil Ambani Is About to Sell $3.2 Billion Worth Assets To Fix Debt

Indian business leader Anil Ambani plans to raise about ₹21,700 crore ($3.2 billion) by selling assets from roads to radio stations in an exceedingly bid to chop debt. According to the exponent, the breakdown of plus sales would be – Reliance Infrastructure is seeking ₹9,000 crore from the sale of 9 roads comes, Reliance Capital aims to lift ₹1,200 crore by selling its radio unit, and ₹11,500 crore from monetizing its holdings within the monetary business.

Anil Ambani Is About to Sell $3.2 Billion Worth Assets To Fix Debt

The Anil Ambani-led company reported its biggest ever quarterly loss within the fourth quarter of 2018-19 because of impairments and write-offs; with its auditors adding a disclaimer that they do not have adequate audit proof to work out if the result provides a “true and fair” read of the losses and income. Auditors, BSR & Co. LLP and Pathak H.D. & Associates raised questions on the company’s ability to continue as a going concern. Given this and also the company’s exposure to different cluster firms that face monetary stress, rating agencies have downgraded Reliance Infrastructure’s ratings to rock bottom level, indicating that default is impending. “Reliance Infrastructure is confident of implementing its resolution plan well before the 180-days deadline based on advanced progress of its various asset monetization initiatives,” the company says.

Quick closure of the planned asset sales is vital. CARE Ratings had pointed to delays in divestments at Reliance Capital in an April statement whereas cutting the financier’s rating.

Anil Ambani Is About to Sell $3.2 Billion Worth Assets To Fix Debt

Reliance Communications’ 2017 deal to sell its telecom assets to Reliance Jio Infocomm Ltd., closely-held by Anil’s elder brother Mukesh Ambani, was scrapped earlier this year.

“The lack of timely realizations in the asset sales is sounding alarms for most of the Anil Ambani-led companies,” said Mathew Antony, managing partner at Aditya Consulting that advises bankrupt firms on fundraising.

Reliance Infrastructure is in advanced talks to sell its 9 road projects, its spokesman said. The urban center railway rail operator aims to be debt-free by March 2020. It pared its consolidated debt by forty fifths over a year to 177.7 billion rupees as of end-March, the spokesman aforesaid.

Anil Ambani Is About to Sell $3.2 Billion Worth Assets To Fix Debt
Akshay Varma
Akshay Varma is a senior Journalist with Mass Media Communications Degree from Aurora Degree College. He writes mostly on Movies and Trending Topics


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