SBICAP Trustee Company has invoked a pledge of 11.55 crore shares of Kingfisher Airlines Ltd pledged with the financier by Chairman Vijay Mallya and his various group companies for the cash-strapped airline that ceased to operate in October 2012. The shares amounting to a 14.29 per cent stake in the defunct airline possess a market value of about Rs 45 crore.
Mallya and his affiliates have a 32.12 per cent stake in Kingfisher Airlines, as promoters of the company, but 21.60 per cent of that stake is pledged. UB Holdings, the principal holding company of the Mallya-led UB Group, has a 21.36 per cent stake as the largest promoter of the company but has pledged 99 per cent of that stake - presumably from which 14.29 per cent was pledged with SBICAP. UB Holdings has made large borrowings and also provided corporate guarantees for loans to Kingfisher Airlines Ltd, reeling under debt of Rs 7,400 crore. Lenders, including State Bank of India, have begun finding ways to monetize the collateral to recover their dues, by selling pledged shares held in various UB Group companies.
21/01/14 Antonita Madonna/Business Standard
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Mallya and his affiliates have a 32.12 per cent stake in Kingfisher Airlines, as promoters of the company, but 21.60 per cent of that stake is pledged. UB Holdings, the principal holding company of the Mallya-led UB Group, has a 21.36 per cent stake as the largest promoter of the company but has pledged 99 per cent of that stake - presumably from which 14.29 per cent was pledged with SBICAP. UB Holdings has made large borrowings and also provided corporate guarantees for loans to Kingfisher Airlines Ltd, reeling under debt of Rs 7,400 crore. Lenders, including State Bank of India, have begun finding ways to monetize the collateral to recover their dues, by selling pledged shares held in various UB Group companies.
21/01/14 Antonita Madonna/Business Standard
