State Bank of India (SBI) is trying to obtain two guarantees provided by the former billionaire Anil Ambani, which according to a news report by PTI are worth more than Rs. 1200 crores ($158 million) under the personal guarantee clause of the bankruptcy law.
SBI filed an application with the National Company Law Tribunal to appoint a resolution professional, according to an update on the court’s website.
Ambani who had given a personal guarantee on the bank’s loans to his Reliance Communications Ltd. and Reliance Infratel Ltd. was notified that he had been given a week’s time to reply on Thursday, according to the Press Trust of India.
A spokesperson of Ambani said, “The matter relates to a corporate loan availed by Reliance Communications and Reliance Infratel and is not a personal loan of Mr. Ambani.”