Indian tycoon Anil Ambani has settled a multi-million debt with Sweden's Ericsson, the company said Monday, after judges threatened the billionaire with jail if he did not pay his dues.
The Supreme Court in February found that Ambani, 59, had refused to pay telecom giant Ericsson 5.5 billion rupees ($77 million), as previously ordered by India's top court.
The judges warned that Ambani would be jailed for three months if 4.5 billion rupees were not stumped up within a month.
His firm Reliance Communications - which is some $4 billion dollars in debt after a brutal telecom price war with his brother Mukesh, India's richest man - said it would comply with the ruling.
The dispute with Ericsson started when the Swedish firm sought to recoup 16 billion rupees from Reliance Communications. They reached a settlement last May, but the Indian company failed to meet payment deadlines.
Ambani had hoped to avoid insolvency proceedings by offloading his company's telecom tower and spectrum business to his brother's Reliance Jio for $2.4 billion. But the deal has hit regulatory hurdles and opposition from creditors.
(Source: Arabianbusiness.com YouTube channel)