The company hiked its loan limit to the debt stricken carrier to Rs 750 cr from Rs 300 cr.
The company's exposure relating to Kingfisher Airlines is under various accounts including corporate guarantees to banks.
In a disclosure to the markets, United Spirits has said it is awaiting information from UB Holdings for determining the treatment in the company's accounts of the loan together with applicable interest accrued until March 31, 2014.
Enforcement Directorate to approach court to attach industrialist's properties worth Rs 4,000 crore
Sources said a few other lenders were also contemplating a move to declare both Kingfisher Airlines and UBHL wilful defaulters.
After razing his ancestral bungalow, housed in an expansive 4.5-acres of prime location in the central business district of Bangalore, Mallya's attempt to unlock value in the land by building the luxury KingfisherTowers has been stalled.
Diageo-led United Spirits pulls out one more lifeline from UB Holdings.
Says will allow winding-up petition of aircraft lessors in case it fails to do so.
While announcing its results on Wednesday for the quarter ended June, UB Holdings said about a tenth of the corporate guarantees for Kingfisher Airlines were being invoked.
UB Holdings facing a slew of legal cases over its exposure to the loans of now-grounded Kingfisher Airlines and increasing pressure from a consortium of lenders, may be forced to seriously go ahead with the transaction this time.
The sale came when Mallya was trapped in a sea of debt, mainly as a result of the losses his now grounded carrier, Kingfisher Airlines, had been piling.
In all, 4.2 million shares were sold during the quarter.
In fresh trouble for liquor baron Vijay Mallya, United Bank of India has identified United Breweries Holdings, the guarantor of grounded airline Kingfisher, as wilful defaulter.
A clutch of global financial institutions led by T Rowe Price, HSBC and an investment arm of the Government of Singapore are the lead investors in the Rs 600 crore (Rs 6 billion) qualified institutional placement (QIP) issue of UB Holdings.
Mallya said he was being advised by lawyer Harish Salve.
Creditors are fighting to get back Rs 600 crore, KFA employees not paid for months.
The transaction, which values Air Deccan at Rs 155 a share, would be through allotment of non-preferential shares to UB
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According to data reviewed by Business Standard, the dues from UB Holdings alone to USL shot up by 4.3 times to Rs 1,188 crore (Rs 11.88 billion) by the end of the last financial year, compared to an outstanding of Rs 272 crore (Rs 2.72 billion) by the end of FY12.
Banks tighten hold on Mallya for defaults on KFA loans
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Diageo, which recently coughed up a total of Rs 18,000 crore (Rs 180 billion) to take majority control of USL, seems to have a lot of faith in him.
The parent entity, (Holdings) Ltd, have also expressed concern over the company's significant exposure to the airline.
UB Holdings had appealed to the bench, of judges Dilip B Bhosale and B Manohar, to let it use Rs 13 crore (Rs 130 million) from a Rs 380-crore (Rs 3.8 billion) deposit to pay a month's salary to employees of the grounded airline and Rs 47 crore (Rs 470 million) to settle tax dues on capital gains made from the sale of a stake in United Spirits to London-based Diageo that got it Rs 1,460 crore (Rs 14.6 billion).
He manages to get back a majority of pledged shares.
Confirming the sale, senior executives of public-sector banks said there was no court directive yet to stop selling shares.
SBI says recovery process on as no court stay yet.
Must satisfy shareholders on game plan to steer UB Group over next 12 months.
United Spirits had earlier forked out a loan of as much as Rs 1,350 crore to UB Holdings.
There is no way out for Mallya's debt problems unless he sells some of his stake, says an analyst.
He was also the chief financial officer of Kingfisher Airlines.
UB Group's other businesses are being aggressively being ramped up. The group recently entered apparel exports to add to its leather exports business. These are in addition to a sturdy fertiliser arm, an engineering construction firm and a property development business which is getting into building high-end apartments.
A Special Court for Economic Offences has ordered summons to be issued against him over dues from his Kingfisher Airlines to the I-T Dept.
UB Holdings, which operates Kingfisher Airline, last year picked up a 26 per cent stake in Deccan Aviation for Rs 550 crore (Rs 5.5 billion). Subsequently, they made an open offer for acquiring another 20 per cent taking its holding to 46 per cent. The merger between Kingfisher Airlines and Air Deccan of Deccan Aviation, is now awaiting Karnataka High Court approval.
SBI-led consortium expects to make over Rs 13,000 crore from sale of assets
Air Deccan, which was forced to sell 26 per cent to Kingfisher Airlines chairman Vijay Mallya's UB Holdings to keep its head above water a few months ago, is likely to break even before Kingfisher.
Vijay Mallya-promoted UB Group on Tuesday said it has received shareholders' approval for the deal and has put in place an escrow mechanism to complete the transaction.
Even if you assume a higher return fare of Rs 40,000, the yield will still be lower than the costs.
Sources close to the development told PTI that the open offer was expected to be announced next week. The share price for the open offer would be Rs 155 per share, the amount UB Holdings paid for picking up the 26 per cent stake.
Vijay Mallya, during the past two days, had ceded a marginal stake in it, allowing Heineken to be the single largest shareholder.
I don't place much emphasis on timing the market. Stocks don't move up because we buy them, says Ramesh S Damani
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