Press Esc to close
Tuesday 27 September 2016
News updated at 12:25 AM IST
Weather
Max: 27.3°C
Min : 19.8°C
In Bengaluru
Generally cloudy

Mallya shrugs off winding up petitions against UBHL

Bangalore, Sep 12, 2013, DHNS:

Banks had moved court for Rs 6,203 crore

UB Holdings (UBHL) Chairman Vijay Mallya said that he wasn't perturbed by cases filed by various petitioners to wind up the company for its alleged failure to honour guarantees given by it on behalf of UB group's failed aviation venture, Kingfisher Airlines (KFA).

“There are five winding-up petitions filed before the Karnataka High Court in Bangalore. Out of these, we have serious counter-claims against three, which basically leaves two, with whom we are in dialogue for out-of-court settlement,” he told reporters after the conclusion of the 97th annual general meeting of UBHL here on Thursday.

It may be recalled that a consortium of 14 banks that had lent money to KFA had filed a petition in July this year at the Karnataka High Court, Bangalore, seeking to restrain UBHL from disbursing the amount it had realised from sale of 13.61 crore shares of another group United Spirits to UK liquor company Diageo as part of the November 2012 deal.

The consortium had said that it had to recover Rs 6,203 crore from KFA and UBHL. UBHL had executed corporate guarantees on behalf of KFA. Earlier, during the AGM, he told shareholders lenders have initiated claims against UBHL on “dubious” grounds, a veiled reference to their invoking corporate guarantees given by the company.

On roping in investors for KFA, he was vague in his response. “Talks are on with potential investors,” he said at the AGM, something that he said during KFA's annual general meeting last year. Mallya also said that residential project of UBHL.

A note put up by Kotak Securities said UBHL is entitled to 55 per cent share of the super built area and the luxury residential project is expected to be completed by 2015.
While declining to comment on how many flats have been sold, Mallya conceded that the rates have come down from Rs 30,000 per sq ft to about Rs 24,000 in the recent past, reflecting softening of real estate prices as a result of economic downtrend.

On fears of him losing control of stake due to rival fertiliser companies Zuari and Deepak picking up large stakes in another UB group company Mangalore Chemicals & Fertilisers (MCF), Mallya said, “I can't stop people from buying shares. But, we are fully in control of MCF and intend to be so.”


Go to Top

Photo Gallery
A girl and her father kick a pinata representing Donald Trump...

A girl and her father kick a pinata representing Donald Trump...

Children pay tribute to Indian soldiers killed in Uri strike, during an event...

Children pay tribute to Indian soldiers killed in Uri strike, during an event...

Tourists celebrating World Tourism Day in Pushkar on Monday...

Tourists celebrating World Tourism Day in Pushkar on Monday...

Sushma Swaraj, Minister of External Affairs for India, speaks during the 71st session...

Sushma Swaraj, Minister of External Affairs for India, speaks during the 71st session...

College students paying tribute to Uri attack martyrs in Mumbai...

College students paying tribute to Uri attack martyrs in Mumbai...

Indian team players celebrate their victory over New Zealand on the final day...

Indian team players celebrate their victory over New Zealand on the final day...

Sudarsan Pattnaik creates a sand sculpture with message 'Keep It Clean: Happy World Tourism Day'....

Sudarsan Pattnaik creates a sand sculpture with message 'Keep It Clean: Happy World Tourism Day'....

Bollywood actor Juhi Chawla during the inauguration of a cancer initiative...

Bollywood actor Juhi Chawla during the inauguration of a cancer initiative...

Indian Space Research Organisation (ISRO)'s PSLV C35 carrying SCATSAT-1...

Indian Space Research Organisation (ISRO)'s PSLV C35 carrying SCATSAT-1...

'Thousands Hands' Goddess Durga being prepared at a community puja pandal ahead of the Durga Puja...

'Thousands Hands' Goddess Durga being prepared at a community puja pandal ahead of the Durga Puja...

Copyright 2014, The Printers (Mysore) Private Ltd., 75, M.G Road, Post Box 5331, Bengaluru - 560001
Tel: +91 (80) 25880000 Fax No. +91 (80) 25880523