CDB provides $300 million loan to Reliance Communications (Facility II) to repay debts and modernize equipment (Linked to Record ID#42654, #54349, #54350)

CDB provides $300 million loan to Reliance Communications (Facility II) to repay debts and modernize equipment On March 9, 2011, China Development Bank (CDB) provided a $300 million loan ("Facility II") to Reliance Communications to help modernize its equipment and payoff maturing loans.

It was secured by (i.e. collateralized against) (1) a first pari passu charge over the present and future moveable plant and machinery and capital work in progress of, and all rights, title, interest, benefits, claims and demands under and in respect of all insurance contracts entered into in relation to these assets by Reliance Communications Limited, Reliance Communications Infrastructure Limited, Reliance Infratel Limited and Reliance Telecom Limited; (2) assignment of 20 unified access service licenses, a national long-distance license and an international long-distance license of Reliance Communications Limited; and (3) pledge of: (i) 66,980,095 equity shares of Reliance Telecom Limited held by Reliance Communications Limited; (ii) 18,019,900 equity shares of Reliance Telecom Limited held by Reliance Infocomm Infrastructure Limited; and (iii) 9,379,999,994 equity shares of Reliance Communications Infrastructure Limited held by Reliance Communications Limited.

As of December 31, 2014, the u(principal) amount outstanding under this loan facility was $29 million. In February 2019, Reliance Communications filed for bankruptcy as it was unable to sell assets to repay its debts.