Thursday, May 02, 2013

Banks to invoke personal guarantee of Mallya for KFA loans


The banks have started to close in on Kingfisher Airlines  . After the sale of pledged shares, lenders have now invoked the guarantees provided by Kingfisher Airlines which consists of a personal guarantee of Vijay Mallya and the corporate guarantee of UB Holdings  , reports CNBC-TV18's Gopika Gopakumar.
As far as the personal guarantee goes, Vijay Mallya's net worth has been assessed at around Rs 1,500 crore in 2010. Now, banks hope to be able to recover to the full limit of this net worth by invoking the personal guarantee.
As far as corporate guarantee of UB Holdings is concerned, the total value of shareholding of UB Holdings in various group companies is valued at around Rs 8,300 crore. Banks are hoping that by invoking the corporate guarantee of UB Holdings, they will in effect be invoking all the shares held by UB Holdings in various group companies.
02/05/13 moneycontrol.com