Vijay Mallya gives Rs 5,904 crore guarantee to Kingfisher Airlines lenders

Kingfisher Airlines Chairman Vijay Mallya gave guarantees worth Rs 5,904 crore for the carrier’s loans and other liabilities in 2011-12, but did not get any commission for the same because of lenders’ opposition.
While guarantees given by Mallya fell from Rs 6,156 crore in the previous year 2010-11, the guarantees provided by Kingfisher’s holding and associate companies rose from Rs 8,863 crore to Rs 8,926 crore in this period.
Mallya had got a commission of Rs 51 crore for these guarantees in 2010-11, but the airline has said that payment of such commissions has been withdrawn after directions from the consortium of its lenders.
As per the company‘s latest annual report 2011-12, sent to shareholders last evening ahead of their Annual General Meeting on September 26, the airline did not make any payments to Mallya during the fiscal.
04/09/12 CanIndia

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Categories: Kingfisher Sep 2012