Ambani's Shot at Brotherly Bailout Faces Insolvency Rule Test

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Billionaire Mukesh Ambani’s prospects for bailing out his younger brother’s phone company are fading after an Indian tribunal put his sibling’s Reliance Communications Ltd. into insolvency proceedings, which prohibit “connected persons” from acquiring assets of delinquent borrowers, Bloomberg News reported. Ambani is India’s richest man and the founder of upstart rival Reliance Jio Infocomm Ltd., which had agreed in December to pay about $3.7 billion for airwaves, towers and fiber assets of the company known as RCom. Insolvency administrators will now oversee disposal of RCom assets under rules that could bar him from bidding for them. As the siblings are majority shareholders and part of management at their respective companies, a bid by Jio may be ineligible, said Shahezad Kazi, a lawyer with Mumbai-based S&R Associates. Read more.