Reliance Capital Ltd. has called off a sale of its general insurance unit to Hero Fincorp, forcing embattled tycoon Anil Ambani to look for options as he seeks to reduce debt, people familiar with the matter said.

The talks for selling Reliance General Insurance Ltd., which were at an advanced stage, ended after the shadow financier struggled to raise funds for the acquisition, said the source, asking not to be named as the information is not public. Ambani’s group is looking for alternatives for the insurance asset including reaching out to other potential buyers, the source said.

Also read:Anil Ambani in talks to sell General Insurance biz to Hero FinCorp

The sale of the fully-owned insurance unit is crucial for Ambani as he steps up efforts to cut his groups debt that has ballooned to about ₹939 billion ($13 billion) at four of its biggest units. Reliance Group is committed to meeting all future debt obligations, Ambani said in a rare conference call in June, and becoming capital light, with bare minimal debt.

A spokesman at Reliance Capital declined to comment, while a representative for Hero FinCorp didn’t respond to an email and phone calls seeking comment. Hero Fincorp was in advanced talks to buy the insurer at a valuation of about ₹60 billion ($860 million).

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