Kingfisher yet to settle fuel dues with BPCL

Mumbai: The state-owned Bharat Petroleum Corporation (BPCL) and the Vijay Mallya-controlled Kingfisher Airlines have not been able to reach common ground on the settling of dues that Kingfisher owes to the oil marketing company.
Although Kingfisher owes Rs 290 crore to BPCL, it has offered a payment of Rs 10 crore every month, as a settlement arrangement, which was turned down by BPCL.
While arguing the arbitration petition, earlier filed by BPCL against Kingfisher, the oil firm said the offer of Rs 10 crore was not acceptable.
BPCL had also filed a winding up petition in the Karnataka High Court against Kingfisher, which is pending. BPCL is represented by senior counsels Janak Dwarkadas and Amol Baware.
Kingfisher counsel Navroz Seervai disputing the claim of insolvency, argued that the airline was paying about Rs 130 crore to another petroleum major for the monthly supplies.
09/10/09 Economic Times

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Categories: Kingfisher Oct 2009