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.
'India is quickly becoming the beating heart of modern chess, and its role as an economic power is more and more visible.'
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.
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.
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.
Banks tighten hold on Mallya for defaults on KFA loans
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.
Says will allow winding-up petition of aircraft lessors in case it fails to do so.
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.
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.
42 years of World Cup triumph: A Day that made Indian cricket what it is
In all, 4.2 million shares were sold during the quarter.
Creditors are fighting to get back Rs 600 crore, KFA employees not paid for months.
SBI says recovery process on as no court stay yet.
He was also the chief financial officer of Kingfisher Airlines.
Five years after the Dutch brewer took 37.4% in Vijay Mallya's UB, it has bought another 1.35%.
Move comes as huge provisions for bad loans push loss to Rs 4,488 crore.
The Reserve Bank of India has put on hold its permission to the Switzerland-based UBS Bank to open a branch in India as the Enforcement Directorate is probing alleged transfer of funds between Pune-based stud farm owner Hasan Ali and a Saudi Arabian arms dealer through the bank.
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.
SBI-led consortium expects to make over Rs 13,000 crore from sale of assets
Diageo-led United Spirits pulls out one more lifeline from UB Holdings.
Sebi on Friday barred fugitive businessman Vijay Mallya from the securities markets and restrained him from associating with any listed firm for three years in the matter of routing of funds to the Indian securities market using overseas bank accounts with UBS AG. The Indian government has been attempting to extradite Mallya from the United Kingdom to face fraud charges related to his now-defunct company Kingfisher Airlines. Mallya has been living in the United Kingdom since March 2016.
Last Saturday, USL board asked its Chairman Vijay Mallya to quit.
Most analysts, who have long stopped covering UB stocks because of continuing troubles, were surprised to see a sudden spike of up to 20 per cent in their share prices on Tuesday.
The approval given to UBS earlier was kept on hold till it completed certain transactions. Now that the bank has completed them, it can start a branch, RBI deputy governor Leeladhar told reporters on the sidelines of a function organised by the Union Bank of India.
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.
The transaction, which values Air Deccan at Rs 155 a share, would be through allotment of non-preferential shares to UB
Auditors and promoter entities linked to the UB Group have come under scanner of multiple regulatory agencies for alleged irregularities.
Mallya said he was being advised by lawyer Harish Salve.
UB group's McDowell & Company has acquired up to 54.54 per cent stake in Shaw Wallace and Company from Chhabria's Jumbo World Holdings for over Rs 1,300 crore ($300 million).
He manages to get back a majority of pledged shares.
The results are required to be disclosed by listed companies on stock exchange platform for benefit of investors.
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UBS added that its strategists are positively surprised by the scope and tone of the Plenum document.
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