The Enforcement Directorate on Thursday said it has restituted funds worth more than Rs 300 crore towards long-pending dues of the former workers of now defunct Kingfisher Airlines that was promoted by fugitive liquor baron Vijay Mallya.
A senior IDBI Bank official allegedly conspired with businessman Vijay Mallya for sanction and disbursement of loan to the latter's Kingfisher Airlines, the Central Bureau of Investigation said in its supplementary chargesheet filed in a Mumbai court. Mallya is an accused in the alleged Rs 900-crore IDBI Bank-Kingfisher Airlines loan fraud case, which is being probed by the CBI. The Central agency had recently filed a supplementary chargesheet before a special CBI court.
UB Group Chief Vijay Mallya on Tuesday said the Group would raise a total of $400 million over the next one year, which includes an IPO for its aviation business, Kingfisher Airlines.
Shortage of commanders may be forcing Kingfisher Airlines asking its pilots to fly more but the airline says despite some cockpit crew leaving the organisation, it still has the "adequate number".
Kingfisher Airlines will be the Official Umpire Partner for the Indian Premier League and will also sponsor all third umpire decisions during the 59 action packed games in the Twenty20 tournament beginning next month.
The board of directors of the company have approved that the funds be raised through various instruments.
Domestic private carrier Kingfisher Airlines, impatient to launch international services, will in the next six to eight weeks apply for launching an airline in the US that would enable it operate flights into India.
Notices have been issued to the company for penal damages.
Mallya and his UB Group companies, including Kingfisher Finvest, held a 32.12 per cent stake in the airlines as of September.
I-T department raises tax demand on them for unpaid tax deducted at source
Ten years after Kingfisher Airlines was grounded, its former employees continue to wait for their dues. On Monday, the Supreme Court awarded a four-month sentence to the grounded airline's flamboyant owner Vijay Mallya in a contempt case. The apex court also ordered him to deposit $40 million plus interest in four weeks to avoid attachment of his properties.
SBI Chairman Pratip Chaudhuri told reporters in New Delhi on Thursday the Kingfisher Airlines (KFA) account had turned into a non-performing asset (NPA). "The account became an NPA on December 31, 2011. They are in default," Chaudhuri said.
SFIO is looking into the role of Grant Thornton LLP which had valued the brand.
Private carrier Kingfisher Airlines on Wednesday got the crucial operational permit from the civil aviation ministry, recognising it as a scheduled carrier and enabling it to launch flights from Monday next.
Private equity majors interested in buyouts have started initial discussions with promoter Vijay Mallya.
Kingfisher Airlines, promoted by the UB Group, expects to get into the black in December. According to Ravi Nedungadi, president and CFO, UB Group, the airline has been driving in volumes and efficiencies which is likely to be reflected in the revenues this month.
The Mumbai International Airport (MIAL) has threatened preventing Kingfisher Airlines from operating from May 14 if the cash-strapped carrier does not clear the dues towards airport charges or at least opt for a cash-n-carry mode.
Lalit Modi posted a social media video from Vijay Mallya's 70th birthday party in London, referring to the pair as the 'two biggest fugitives' of India.
Virtually ruling out closure of debt-laden Kingfisher Airlines (KFA), Civil Aviation Minister Ajit Singh on Thursday said promoter Vijay Mallya will have to take call on shutting down the business.
Airline's lenders to meet next week to discuss next move.
The airline shut shop in October 2012.
Kingfisher Airlines is conducting walk-in interviews for Flying Model positions on July 6 and July 7.
Bank claims it wasn't quizzed by CBI, only financial information was sought.
Case is related to payment of user development and passenger service fee.
The board of Kingfisher Airlines today approved converting lenders' debt of up to Rs 1,355 crore (Rs 13.55 billion) and the promoter-founders' debt of Rs 648 crore (Rs 6.48 billion) into share capital.
Kingfisher Airlines, India's first full service low-cost carrier, will induct 11 new Airbus A320 aircraft to its fleet by January 2006, its chairman and managing director Vijay Mallya said on Wednesday.
The other two companies were Spanco Limited (Rs 37 crore or Rs 370 million) and Arch Pharma (Rs 56 crore or Rs 560 million).
The carrier commenced international operations last year and currently flies to Singapore, Hong-Kong, Colombo, Dubai and Dhaka apart from other destinations.
The company, owned by the UB Group, had been relying on internal group reserves and debt to manage its operations over the past two years and this infusion is expected to fuel its sustained growth.
The brand name was pledged to 14 lenders, including State Bank of India (SBI), under a debt recast agreement in which loans valuing Rs 6,500 crore were restructured and converted into equity.
After recast, Kingfisher Airlines total debt reportedly came down to Rs 7,057 crore (Rs 7,057 billion) which is still considered very high for a private domestic carrier.
The defunct Kingfisher Airlines still maintains a big employee roster.
Kingfisher Airlines, which emerged out of an impasse over salary payment to its staff, is likely to face more trouble soon with the Revenue Department deciding to move the Supreme Court to expedite recovery of about Rs 330 crore dues.
While higher fuel costs and irrational pricing are key concerns, infusion of funds to retire debt is crucial if Kingfisher Airlines has to improve its financials.
Private carrier Kingfisher Airlines plans to raise up to $175 million (about Rs 840 crore) before March next year through rights issue and global depository receipts (GDR).
Kingfisher Airlines is looking to roll over close to Rs 800 crore of its short-term debt, even as it finalises the paperwork to borrow another Rs 1,500 crore from a few Indian public sector banks.
At the beginning of this year, his stake in the airline stood at 30.14%.
Shares of Kingfisher Airlines on Friday slumped by over 19 per cent to an all-time low on the bourses, before recovering some ground, as the cash-strapped company continued to face turbulence after it cancelled 30 more flights on Thursday.
The government on Friday said it has penalised Kingfisher Airlines with a fine of over Rs 26 crore (Rs 260 million) for delay in the payment of tax deduction at source (TDS).
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