Reliance Power faces US$165.41mn IBC application over subsidiary debt
Reliance Power announced that Export Import Bank of the United States (US Exim) has filed an application under Section 7 of the IBC, 2016, against the company. This action alleges a default of US$ 165.41 million debt by Samalkot Power Limited (SPL), a subsidiary, which is guaranteed by Reliance Power. The company had previously disclosed on July 1, 2025, that SPL had filed an application before the London Court of International Arbitration on June 29, 2025, against US Exim and Citibank N.A., arguing that the debt is not due and is pending adjudication. Reliance Power stated that the current IBC application is not legally tenable and will be appropriately contested, with the company taking all necessary steps to protect its interests.
Key Highlights
- US Exim filed an IBC application against Reliance Power.
- Application alleges US$165.41mn debt default by subsidiary SPL.
- Reliance Power guaranteed the debt of Samalkot Power Ltd.
- SPL previously contested debt in London arbitration.
- Reliance Power plans to legally contest the IBC application.