Sunday, August 18, 2013

London to Delhi, lenders & lessors pile suits against UB

Bangalore: The lenders’ consortium of Kingfisher Airlines, parallely with the latter’s lessors and vendors, are pushing the UB Group to a corner to recover their dues. They have dismissed UB Group chairman Vijay Mallya’s statements on being hopeful of restarting the airline.
The airline’s accumulated losses are Rs 16,023 crore and its net worth is a negative Rs 12,919 crore; it has further posted a net loss of Rs 1,156 crore for the first quarter of 2013-14, on nil revenue. The lenders’ consortium is understood to have recovered close to Rs 1,500 crore of their total dues of Rs 8,000 crore. The lessors are also going all out to recover their share. For instance, one of them has filed a petition in the Delhi high court for execution of an ex-parte decree by a bench in the UK for close to $17 million; it is being contested by the UB Group. From London to Goa and Delhi, Mumbai and Karnataka, the UB Group is fighting legal battles against the lessors and lenders, hopeful of salvaging some time before the lenders move further aggressively to enforce the corporate and personal guarantees of UB Holdings and Mallya.
17/08/13 Business Standard