IDBI asks KF to pay back Rs 900 cr

Mumbai: IDBI Bank has recalled a Rs 750-crore loan advanced to Kingfisher Airlines, after the company failed to stick to its repayment schedule.
IDBI has sent a notice to the airline asking it to pay a total of Rs 900 crore, which includes a Rs 150-crore short-term loan on which the Vijay Mallya-owned company has missed some payments and a Rs 750-crore loan which will mature after some years.
The letter, which was sent last week, has asked India’s second-largest private airline to pay around Rs 900 crore by the middle of this week. If this did not happen, the bank said that it might invoke guarantees issued by holding company United Breweries Holding and by Vijay Mallya himself.
The contents of the letter were described to ET by people with access to it. Officials from IDBI declined to comment on the matter.
Mr Mallya denied that IDBI was calling back the loan. “The loan was given by a consortium led by SBI. So far, there is no problem. The information that IDBI is recalling the loan is incorrect,” he said.
17/05/10 Sangita Mehta & M Padmakshan/Economic Times

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Categories: Kingfisher May 2010