There is no way public sector banks are going to get back even a third of the surging dues of the defunct Kingfisher Airlines (KFA) whose unpaid debts including overdue interests have surpassed Rs12,000 crore.
The market estimated principal amount is roughly Rs8,000 crore and banks have personal guarantees of Vijay Mallya besides loads of KFL shares and a few of UB, United Spirits and McDowell’s.
HDFC, one of the lenders, on January 16, liquidated 90,000 shares of United Spirits kept as security with it by UB Group for Rs25 crore. This was towards residential and real estate business of UB Group in Bangalore and not towards KFA where it has zero exposure.
While shares of United Spirits were sold at an approximate per share price of Rs2,778 towards recovery of dues, bankers to KFA have no such luxury as KFA trades at Rs3.05, market cap of which works out to be Rs80.33 crore.
08/02/14 OP Thomas/Daily News & Analysis
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The market estimated principal amount is roughly Rs8,000 crore and banks have personal guarantees of Vijay Mallya besides loads of KFL shares and a few of UB, United Spirits and McDowell’s.
HDFC, one of the lenders, on January 16, liquidated 90,000 shares of United Spirits kept as security with it by UB Group for Rs25 crore. This was towards residential and real estate business of UB Group in Bangalore and not towards KFA where it has zero exposure.
While shares of United Spirits were sold at an approximate per share price of Rs2,778 towards recovery of dues, bankers to KFA have no such luxury as KFA trades at Rs3.05, market cap of which works out to be Rs80.33 crore.
08/02/14 OP Thomas/Daily News & Analysis
