INSUBCONTINENT EXCLUSIVE:
Anil Ambani said Reliance Capital Ltd
will exit its lending businessFour years into one of the biggest, longest unwindings in India's corporate history, tycoon Anil Ambani found
himself in a familiar place Monday: Presenting shareholders with another plan to sell off assets and pay debt.His Reliance Group is planning
to pay creditors Rs 15,000 crore ($2.1 billion) more by March, the embattled executive told investors on Monday in Mumbai
Financial unit Reliance Capital Ltd., whose credit rating was downgraded to default by local firms this month, will exit its lending
business, he said.Mr Ambani, 60, is struggling to save the remnants of his telecommunications-to-infrastructure empire from collapse after
his wireless carrier, Reliance Communications Ltd., slipped into insolvency earlier this year
Once a billionaire, his personal fortune has dwindled over the years as his businesses sank under the weight of debt
As of July, four of the biggest group firms, excluding the phone company, had about Rs 93,900 crore of debt.Mr Ambani is planning further
disposals just as some of India's biggest conglomerates are doing the same and lenders are pulling back on loans to strengthen their own
Bigger rivals like brother Mukesh Ambani's Reliance Industries Ltd., the Shapoorji Pallonji Group and billionaire Subhash Chandra's Essel
Group have all announced plans to sell off parts of their groups to pare debt.Earlier this month, Reliance Capital called off a sale of its
general insurance unit to Hero Fincorp after the buyer struggled to raise funds, people familiar with the matter said at the time.As it
abandons lending, Reliance Capital will be a financial shareholder in its Reliance Commercial Finance and Reliance Home Finance businesses,
while the parent will rely on its insurance business as a "long-term value creator," Anil Ambani said Monday.Reliance Capital shares fell as
much as 14 per cent on Monday in Mumbai, their biggest intraday drop in more than a month
The stock has fallen 89 per cent this year, compared with an about 7 per cent gain in the benchmark BSE Sensex index.Reliance Capital's home
and commercial finance businesses are working with lenders on a "resolution" plan it expects to be completed by December, he said.After the
Reliance Capital meeting, Mr Ambani is facing shareholders at annual general meetings for Reliance Infrastructure Ltd., Reliance Power Ltd.,
Reliance Home Finance Ltd
and Reliance Communications Ltd., the latter scheduled to begin at 4 p.m
in Mumbai.Since 2015, Anil Ambani, heir to half of his late father's conglomerate, has been seeking to revive his group's creditworthiness,
only to see asset sales fail and creditors close in, further restricting his options for raising cash.As of this year, Anil Ambani has shown
some progress in paring debt.In June, Reliance Group said it repaid Rs 35,000 crore in the previous 14 months through asset disposals,
excluding Reliance Communications.Disclaimer: TheIndianSubcontinent has been sued for 10,000 crores by Anil Ambani's Reliance Group for its
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