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MUMBAI, March 19 (Xinhua) – Indian tycoon Anil Ambani settled a multi-million dollar debt with Swedish firm Ericsson, the company said yesterday after judges threatened the billionaire with imprisonment if he did not pay his debt.
In February, the Supreme Court had found that Ambani, 59, had refused to pay 5.5 billion rupees (330 million RM) to telecommunications giant Ericsson, as it had previously ordered the supreme court Indian.
The judges warned that Ambani would be imprisoned for three months if 4.5 billion rupees were not recovered within a month.
His company, Reliance Communications, in debt after a brutal telecom price war with his brother Mukesh, the richest man in India, announced that he would abide by the decision.
"We have today received full payments, as requested by the Supreme Court, from Reliance Communications," an Ericsson spokesman told AFP yesterday, without giving any details about the details of the regulation.
Reliance Communications could not be contacted for comment.
Reliance Communications shares lost nearly 10% on the Bombay Indian Stock Exchange at the close of trading yesterday, just the last sharp decline.
The company filed an insolvency application after Reliance Communications did not sell assets to pay the lenders.
The dispute with Ericsson began when the Swedish company sought to recover 16 billion rupees from Reliance Communications. They reached an agreement last May, but the Indian company did not respect payment deadlines.
Ambani hoped to avoid insolvency proceedings by transferring his company's telecommunications tower and spectrum activities to Reliance Jio, his brother, for 2.4 billion US dollars. But the deal struck regulatory hurdles and the opposition of creditors.
Reliance Communications is in liquidation if it is unable to pay off its debts by November.
The Ambani brothers embarked on a fierce quarrel over the control of Reliance Industries after the death of their father, Dhirubhai Ambani, father of wealth, in 2002, without a will.
The pair eventually split the Reliance group, which was the most valuable Indian listed company. – AFP
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