Sunday, July 14, 2013

Lenders move court against UB Holdings on Kingfisher dues

Bangalore: A consortium of 14 banks that have lent money to Kingfisher Airlines Ltd moved the Karnataka High Court on Friday against disbursement of the entire amount realised from the recent sale of 13.61 crore shares of United Spirits Ltd (USL) by UB (Holdings) Ltd. to British liquor major Diageo Plc.
UB Holdings is the guarantor for Kingfisher Airlines.
In its application, the consortium, led by State Bank of India (SBI), has pointed out that it has to recover around Rs. 6,203 crore dues as on May 31 from Kingfisher and UB, being secured creditors.
It asked the court to direct UB to deposit the entire amount realised from the share sale, which was carried out with the permission of the court.
The High Court, on May 24, had granted conditional permission to UB Holdings to sell the shares while hearing the petitions filed by some of the unsecured creditors seeking recovery of dues by winding up Kingfisher and UB.
13/07/13 Krishnaprasad/Business Line