Bengaluru: In a major setback to UB (Holdings) Ltd, the Karnataka High Court on Friday ordered issuance of public notices on the pleas of three foreign firms and a consortium of Indian banks for winding up the holding company.
Justice AS Bopanna passed the order, while admitting the petitions filed by Switzerland-based IAE International Aero Engines AG, England-based Rolls Royce and Partners Finance Ltd and RRP Engine Leasing, a consortium of banks led by State Bank of India and Hindustan Petroleum Corporation.
UBHL had given corporate guarantee to the petitioner-companies on behalf of the grounded Kingfisher Airlines when the latter entered into agreement for purchase of aircraft and aircraft engines. The airline subsequently defaulted on the payment of dues. UBHL also failed to pay dues even after the petitioner-companies invoked corporate guarantees and raised demands. Meanwhile, UBHL had contended that pleas for winding up are not maintainable due to the dispute raised in various suits over the dues from Kingfisher, while also claiming that the corporate guarantees given by it were null and void.
02/01/15 Krishna Prasad/Business Line
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Justice AS Bopanna passed the order, while admitting the petitions filed by Switzerland-based IAE International Aero Engines AG, England-based Rolls Royce and Partners Finance Ltd and RRP Engine Leasing, a consortium of banks led by State Bank of India and Hindustan Petroleum Corporation.
UBHL had given corporate guarantee to the petitioner-companies on behalf of the grounded Kingfisher Airlines when the latter entered into agreement for purchase of aircraft and aircraft engines. The airline subsequently defaulted on the payment of dues. UBHL also failed to pay dues even after the petitioner-companies invoked corporate guarantees and raised demands. Meanwhile, UBHL had contended that pleas for winding up are not maintainable due to the dispute raised in various suits over the dues from Kingfisher, while also claiming that the corporate guarantees given by it were null and void.
02/01/15 Krishna Prasad/Business Line
