India: United Breweries Holding Ltd. to propose one-time settlement offer to banks in winding-up petition

United Breweries Holding Ltd. (UBHL) the parent company of UB Group, will propose a one-time settlement offer to the State Bank of India (SBI)-led lenders’ consortium before the Karnataka High Court, a company official told BloombergQuint on the condition of anonymity. It has, however, sought time to make the offer, the person added.

Last week, the high court had directed UBHL to come up with an offer to settle the matter with the consortium and adjourned the matter till April 4.

On March 7, the UB Group had filed an appeal challenging a February 8 order passed by a single bench, which had directed winding up of UBHL to recover dues payable by the company-promoted, defunct Kingfisher Airlines Ltd.

The creditors, including BNP Paribas, the lead petitioner, State Bank of India (SBI) and aircraft lessors and engine makers such as Rolls-Royce and IAE International Aero Engines AG had moved the court to recover dues worth Rs 146 crore.

Vijay Mallya owns 52.34 percent stake in UBHL.

Earlier the Debt Recovery Tribunal had also ordered the SBI-led consortium of banks to start the process of recovering over Rs 6,203 crore, at 11.5 percent annual interest rate, from the embattled tycoon and his companies in another Kingfisher Airlines case.

21 March, 2017