HPCL ceased from jet-fuelling Kingfisher

Mumbai: The Ministry of Petroleum and Natural Gas has directed HPCL or Hindustan Petroleum Corp Ltd. to sell jet fuel to Kingfisher Airlines solely on cash and- carry terms.
Kingfisher's total unpaid fuel bills have reached to Rs 905 crore while it also facing debts of Rs 314.33 cr to BPCL as on March 2009 and Rs 30.71 crore to IOC.
The corporate guarantee from UB Group (BOM: 532478) in place of a bank guarantee is deemed to be insufficient by the Ministry which directs HPCL to call upon Rs 250- cr corporate guarantee given by UB Group Kingfisher. The airline had paid Rs 40 crore in November, 2009 and had been paying mere Rs 10 crore per month then after.
30/03/10 Commodity Online

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Categories: Kingfisher Mar 2010