More Chinese Lenders Plan to Pursue RCom in Insolvency Court

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Two major Chinese lenders plan to support a move by China Development Bank to put Indian wireless carrier Reliance Communications (RCom) into insolvency court as they seek to recover about $2 billion in debt, said three people with knowledge of the matter. Last month, CDB began insolvency proceedings against RCom, which has been trying for months to restructure its debt via a debt-for-equity swap, the International New York Times reported on a Reuters story. Now, Industrial and Commercial Bank of China (ICBC), the country's biggest-listed lender by assets, and Export-Import Bank of China, plan to back CDB, the sources said. The combined effort would be a rare tilt against an Indian conglomerate by a group of Chinese lenders, keen to boost their presence in India. And it would also further jeopardize Anil Ambani-controlled RCom's efforts to restructure out of court. RCom last week said the majority of its creditors will oppose CDB's insolvency bid. With total debt of 457.33 billion rupees ($7.1 billion) as of end March, RCom is the most-leveraged of all listed telecoms carriers in India. Read more. (Subscription required.)