China Development Bank withdraws insolvency petition against RCom

China Development Bank (CDB), the biggest foreign lender to India`s Reliance Communications Ltd (RCom), on Friday withdrew a petition seeking to drag the indebted telecoms carrier into insolvency.

A lawyer for CDB told the National Company Law Tribunal that the Chinese bank had filed to withdraw the petition. The tribunal allowed CDB`s plea to go forward.

CDB, which is owed around $2 billion along with two other Chinese banks, had filed the petition in November seeking insolvency proceedings against RCom, saying a large amount of loan principal and interest payments was overdue.

After RCom`s debt-reduction plan, including an asset sale to Reliance Jio Infocomm, was announced last week, CDB told Reuters that it was in talks with RCom.