Ready to sell shares to repay loans, UBHL tells high court

Ready to sell shares to repay loans, UBHL tells high court

United Breweries (Holdings) Limited (UBHL) on Wednesday submitted to the High Court of Karnataka that it is ready to sell the company shares to repay the loan. The consortium of banks opposed this and said UBHL has already been attached by the Enforcement Directorate (ED) and the shares cannot be sold.  A division bench comprising Chief Justice S K Mukherjee and Justice P S Dinesh Kumar hearing the original side appeal (OSA) ordered notices to ED to get its stand in the matter.

UBHL has filed OSA challenging the single bench order which had directed winding up of UBHL for its inability to pay debt to international companies and the consortium of banks. The company has contended that it has no obligation to make any payments as they were only the principal guarantor.

Lenders have filed a case against UBHL seeking their dues from the now-defunct Kingfisher Airlines. UBHL had given corporate guarantees for loans to run Kingfisher. Vijay Mallya owns 52.34 per cent shares in UBHL.

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