Saturday, December 06, 2014

Not a wilful defaulter, Kingfisher Airlines tells UCO Bank

Kolkata: Kingfisher Airlines has objected to being identified as a 'wilful defaulter' by state-run UCO Bank, which had sent a notice following non-repayment of a Rs 450 crore loan by the grounded carrier.

"The airline has protested saying that it was not a 'wilful defaulter' as identified by the bank", a source in UCO Bank told PTI.

UCO Bank had sent a notice to the Vijay Mallya-led airline for not repaying a loan of Rs 450 crore which it took to meet  working capital requirements with a corporate guarantee furnished by a group firm.

The bank had sent notices to both Kingfisher Airlines (KFA) and the guarantor.

About UCO Bank's future course of action in this regard, the source said that the bank would examine the arguments forwarded by the airline and would then send a reply.
05/12/14 PTI/Economic Times
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