Mallya ‘wilfully defaulted’ over Kingfisher – bank
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The United Bank of India has said that Vijay Mallya “wilfully defaulted” on loan repayments, leading to the closure of Kingfisher Airlines.
The Indian airline grounded all its aircraft in late 2012 has its slots withdrawn early the following year. Kingfisher has long stated that it plans to resume operations, but has never looked likely to do so.
The charge that Mallya wilfully defaulted will now make any recovery bid even more improbable, as it now restricts him and his companies from seeking future loans, and allows debtors to pursue their losses.
According to data compiled by Bloomberg, Kingfisher had debts of INR91.4 billion (US$1.5 billion) as of 31 December 2013, and the carrier had defaulted on payments to aircraft leasing companies and airports.
Earlier this year, Airbus cancelled an outstanding order from the airline for A350 and A380 aircraft, which were set to become the backbone of the airline’s international operations.
Mallya, who is also the chairman of United Spirits Ltd, United Breweries Ltd and owner of the Force India Formula One team, has vowed to “vigorously” challenge a bank’s ruling.
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