Mallya guarantees Kingfisher loans; gets Rs 50-cr commission

New Delhi: Kingfisher Airlines has given a little over Rs 50 crore as commission to its chairman and key promoter Vijay Mallya, who provided guarantees worth more than Rs 6,100 crore for the airline’s loans and other liabilities during the last fiscal.
The airline, whose share price has crashed by over 20 per cent in the past three trading sessions, is working hard to improve its financial health as well as operating performance, and as part of these efforts it plans to shut down its low-cost service Kingfisher Red in the next four months.
For providing the additional level of collateral for its funding needs, the company gave Rs 50.87 crore to Mallya as “guarantee and security commission” during the year ended March 31, 2011, Kingfisher has told its shareholders.
The airline disclosed the guarantees worth Rs 6,175.63 crore provided by Mallya and the commission paid to him in its Annual Report for the year 2010-11, which were made available to the shareholders ahead of its AGM last week in Bangalore.
Mallya had also furnished guarantees totalling Rs 2,799.56 crore in the previous fiscal 2009-10 on behalf of the company for loans taken and other liabilities, but did not get any commission that year.
02/10/11 PTI/The Hindu

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Categories: Kingfisher Oct 2011