Another firm from the Reliance group has been filed with the insolvency court. After IDBI Trusteeship Services Limited’s insolvency complaint against the company was admitted by the Mumbai bench of the NCLT, Reliance Broadcast Network Limited, which operates the well-known FM radio station Big FM, became the most recent member of the Anil Ambani group to go through the corporate insolvency resolution process.
According to the insolvency application filed by IDBI Trusteeship Services on behalf of L&T Investment Management Limited, Reliance Broadcast Network failed to clear financial debt of Rs 175 crore. The bankruptcy court has appointed Rohit Mehra as the interim resolution professional. L&T Investment Management Limited had subscribed to NCDs worth Rs 200 crore issued by the Anil Ambani group company in three tranches in 2015 and 2016.
IDBI Trustee Services acted as the trustee for L&T Investment Management Services, while Reliance Capital acted as the guarantor for Reliance Broadcast Network. At the time of redemption of the NCDs in 2020, Reliance Broadcast failed to make the payments. Following which, the financial creditor on behalf of L&T Investment Management invoked the guarantee and called upon Reliance Capital to make the payments.
However, despite repeated reminders neither Reliance Broadcast nor Reliance Capital company made the requisite payment forcing the creditor to move NCLT. The NCLT in its order said that the Petitioner (IDBI Trusteeship Services) has been able to establish the necessary ingredient of there being a financial debt and default having been committed by the Corporate Debtor (Reliance Broadcast Network).