Kingfisher Airlines lenders may try ‘wilful defaulter’ tag if guarantee turns dud
Lenders have increased pressure on promoters of Kingfisher Airlines by initiating a move to invoke the corporate guarantee provided by United Breweries and the personal guarantee of Dr Vijay Mallya.
Lenders said that the next move would be to seek an inventory of assets of the guarantor. They have also raised the spectre of labeling the promoters as "wilful defaulters" if they refused to pay despite having the resources. Although lenders have sought to recall their loans KFA and promoters have been continuing to maintain that they are pursuing revival of the airline, including seeking strategic investors. Last week Etihad, the airline once seen as a suitor for Kingfisher, picked up stakes in Jet Airways.
According to disclosures made to Parliament, Vijay Mallya has provided banks with a personal guarantee of Rs 249 crore, while United Breweries gave a corporate guarantee of Rs 1,601 crore. Besides this the next biggest security is the Kingfisher brand which had been valued at Rs 4,111 crore by Grant Thornton.
"One way of recovery against personal guarantee from a recalcitrant promoter is the wilful defaulter list. Putting them on the list does a lot of damage because if they don't pay up all their future entrepreneurships become doubtful," said a banker.
However, experts on banking laws said that it is not easy to classify a borrower a wilful defaulter. "RBI norms require the party to be given a 15-day notice allowing him to make a representation why he should not be called a wilful defaulter. Banks also have to provide him with all supporting evidence to give him a chance to defend himself. He has to make his representation before a committee of the bank and the final decision is taken by another committee including bank chief," said a lawyer representing corporate against banks.
| Kingfisher Airlines lenders set to file Sarfaesi claim - The Financial Express Financial Express The consortium of lenders to Kingfisher Airlines (KFA) will file a claim under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (Sarfaesi) Act in a day or two. But it seems unlikely banks will be able to ... See all stories on this topic » | ||
| Kingfisher Airlines lenders may try 'wilful defaulter' tag if guarantee turns dud Times of India Although lenders have sought to recall their loans KFA and promoters have been continuing to maintain that they are pursuing revival of the airline, including seeking strategic investors. Last week Etihad, the airline once seen as a suitor for ... See all stories on this topic » | ||
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| DGCA rejects Kinfisher Airlines' revival plan TravelBizMonitor The Directorate General of Civil Aviation (DGCA) has rejected Kingfisher Airlines Ltd's (KFA) revival plan that it had submitted to the aviation regulator this month, as per an NDTV report. Kingfisher had requested renewal of its operating permit with ... See all stories on this topic » | ||
| Qatar, Air Arabia interested in Indian airlines Arabian Supply Chain Meanwhile grounded Kingfisher Airlines has also vied for Qatar's investment. Air Arabia is looking at tying up with an Indian partner for investing in a start-up like AirAsia India JV between the Malaysian budget carrier and the Tata Group. "The fight ... See all stories on this topic » | ||
| Banks to invoke personal guarantee of Mallya for KFA loans Moneycontrol.com After the sale of pledged shares, lenders have now invoked the guarantees provided by Kingfisher Airlines which consists of a personal guarantee of Vijay Mallya and the corporate guarantee of UB Holdings , reports CNBC-TV18's Gopika Gopakumar. See all stories on this topic » | ||
| Show me the money: Banks invoke Mallya's personal guarantees Firstpost The banks, which have already begun selling the pledged shares of United Spirits and Kingfisher Airlines, will now start disposing of the properties of the carrier, including the office spaces in Mumbai and an asset in Goa. Sarfaesi (Securitisation and ... See all stories on this topic » | ||
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