Kingfisher's financial stress puts UB under pressure

Bankers and aircraft lessors to Kingfisher Airlines have invoked about Rs 835 crore (Rs 8.35 billion) of corporate guarantees by the airline's primary promoter-vehicle UB Holdings, owned by liquor baron Vijay Mallya.
While announcing its results on Wednesday for the quarter ended June, UB Holdings said about a tenth of the corporate guarantees for Kingfisher Airlines were being invoked.
The company's exposure to the airline, as on June 30, "include investment in equity of Rs 2,114.28 crore (Rs 21.14 billion), corporate guarantees to banks/aircraft lessors of Rs 8,919.86 crore (Rs 89.19 billion), loans and advances of Rs 1,814.14 crore (Rs 18.14 billion) and other receivables of Rs 165.62 crore (Rs 1.65 billion).
09/08/12 Rediff.com

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Categories: Kingfisher Aug 2012