news details |
|
|
| UB Group Fails to Get Stay on Kingfisher Lenders | | | MUMBAI: An Indian court Tuesday refused to stop the creditors of Kingfisher Airline Ltd. 532747.BY +3.57% from selling the shares of UB Group 507458.BY +4.78% companies that the group had pledged as collateral, the head of its biggest lender and a second person with knowledge of the matter said.
"There is no stay order from the court," State Bank of India 500112.BY +2.38% Chairman Pratip Chaudhuri told The Wall Street Journal. He declined to elaborate. A UB Group spokesman declined comment.
United Breweries (Holdings) Ltd., which holds shares in most UB Group companies including Kingfisher, had approached the Bombay High Court to stay the share sale.
Kingfisher owes 70 billion rupees ($1.29 billion) to its lenders and has put up collateral worth 65 billion rupees against the loans. The collateral primarily includes shares of UB (Holdings), United Spirits Ltd., 532432.BY -1.58% Mangalore Chemicals & Fertilizers Ltd. 530011.BY +20.00% and some other group companies, apart from real estate.
On Feb. 12, the airline's lenders said they were planning a loan recall--a term which means they will demand immediate repayment failing which they will recover the money by selling the collateral.
Kingfisher had stopped its flight operations on Oct. 1 because of a strike by employees over pay. Its license was later cancelled by the government.
The decision to recall the loans came after Kingfisher failed to convince its lenders with a plan to restart operations.
On Feb. 15, the group proposed to its lenders that they may sell some pledged shares of United Spirits to British liquor maker Diageo PLC. DGE.LN +0.51% Diageo last November agreed to buy an up to a 53.4% stake in United Spirits for $2 billion, or 1440.00 rupees a share. |
|
|
|
|
|
|
|
|
|
|
|
|
| |
| |
|
|
|
|
 |
|
|
