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Cloud over Sahara plan as BBVA denies loan

business Updated: Mar 26, 2015 02:56 IST
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The latest rescue plan of Sahara was thrown into disarray on Wednesday, when Spanish bank BBVA SA denied having offered a credit line to the bank.

Sahara had reportedly told the Supreme Court on Monday that it had secured a 900 million euro (Rs 6,120 crore) line of credit from BBVA. It had submitted a letter in court written on BBVA notepaper and signed by executive Jose Ramon Vizmanos, taking responsibility for the credit it was giving Sahara.

On Wednesday, Vizmanos told Reuters he had no knowledge of the letter. “We have no credit exposure or any relation with Sahara,” a spokesman for BBVA said. A senior executive of the bank told Reuters that the bank was never in talks with Sahara and the mention of its name in the proceedings was a “surprise”.

Sahara said in a statement on Wednesday that it “does not have any exposure to BBVA... It is Nouam Ltd that has relationship with BBVA... The money in question is an endeavour of a foreign company to purchase the loan portfolio of Bank of China.”

The group had previously submitted in court that Mirach Capital of the US was interested in taking over the Bank of China loan. However, Bank of America denied claims that it was acting as banker for Mirach in the deal.

Mirach and Sahara have subsequently sued each other.

The Court has given Sahara three months to sell offshore properties and raise Rs 10,000 crore to ensure the release of Roy.

(With HTC inputs)