India: United Breweries Holding appeals against winding-up court order

United Breweries Holding Ltd (UBHL) has appealed against an 8 February order of the Karnataka high court that directed winding-up of the company, Livemint reported on March 7 citing a person involved in the case.

UBHL, promoted by Vijay Mallya, held a controlling stake in Kingfisher Airlines Ltd, the debt-ridden airline grounded in 2012. The appeal comes at a time when lenders are trying to recover dues owed by Kingfisher Airlines and multiple authorities are probing allegations of money laundering and fund diversion, among other charges.

The appeal also pleads the court to let the company function in its present form until the pendency of the case, the person cited above said, requesting not to be named, as he is not authorised to speak to the media.

The Karnataka high court had passed an order to wind up the holding arm of Mallya’s erstwhile business empire after multiple parties including a consortium of secured lenders, service providers, lessors of aircraft and suppliers of aero engines sued to recover dues.

There are 10 petitioners with claims amounting to over Rs6,958.60 crore. They have invoked corporate guarantees furnished by UBHL, Mint reported.

Last week, a special court in the capital had confirmed an Enforcement Directorate order to attach Rs4,200 crore assets of Mallya and others, Press Trust of India reported.

Earlier in January, the debt recovery tribunal in Bengaluru ruled in favour of creditors directing them to start the process of recovering Rs6,203.35 crore they claimed in 2013, at an annual interest rate of 11.5%, until the whole amount is paid back. However, attempts to sell off some of Mallya’s properties including the Kingfisher House and Kingfisher Villa in Goa among other properties are yet to find success due to high base prices.

Mallya had left India for the UK in March last year after investigating authorities and lenders closed in. Attempts to extradite Mallya from the UK are on.

08 March, 2017