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Rediff.com  » Business » Karnataka HC summons Mallya in winding up case

Karnataka HC summons Mallya in winding up case

September 16, 2013 15:38 IST

CourtThe Karnataka High Court on Monday directed UB Group Chairman Vijay Mallya to appear before it on Tuesday in connection with a bunch of winding up petitions filed by creditors who are trying to get back close to Rs 600 crore (Rs 6 billion) from his company.

Justice Ram Mohan Reddy asked Mallya to appear in court and bring along his passport.

Certain companies, including BNP Paribas, which are creditors to United Breweries Holding Limited had filed company petitions in the High Court seeking winding up of UBHL as the holding company was unable to pay its debts.

UBHL, holding company of the UB Group, is contesting in the court the admission of six winding up petitions filed by aircraft lessors and financiers of crisis-hit Kingfisher Airlines last year.

The creditors are trying to get back close to Rs 600 crore and had almost stalled the share sale of UBHL's holdings in United Spirits to Diageo, global spirits major.

However, the court had earlier granted approval to UBHL to go ahead with the share sale provided UBHL submitted Rs 250 crore (Rs 2.5 billion) as guarantees to it.

While UBHL has submitted the same, the court has been hearing the winding up petitions.

Mallya last week had expressed the hope of reaching out-of-court settlements with two of the five petitioners and said the company was having serious counter claims against three of the petitioners.

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