OilMin moves to recover Kingfisher dues

New Delhi: Vijay Mallya’s United Breweries (UB) Group, which has decided to sell its stake in Aventis Pharma Ltd for Rs 414.11 crore to clear debt owed by its subsidiaries, is headed for another payout — a larger one.
The trigger is a government directive to state-run Hindustan Petroleum Corporation Ltd to call an emergency board meeting and invoke the corporate guarantee from United Breweries & Holding Ltd against the Rs 602.05 crore owed by UBHL subsidiary Kingfisher Airlines towards the supply of aviation turbine fuel (ATF).
UBHL last week issued a corporate guarantee of Rs 500 crore that matures end-March 2011.
The Petroleum Ministry has also asked HPCL to place Kingfisher on cash-and-carry terms as is done by other state-run firms Indian Oil Corp (IOC) and Bharat Petroleum Corporation Ltd (BPCL) since early 2009.
Minister of State for Petroleum Jitin Prasada, in charge of Marketing, said that though this was a commercial decision between two firms, his ministry was working to protect its PSU’s interest.
24/03/10 Amitav Ranjan/Indian Express

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Categories: Kingfisher Mar 2010