Shares of State Bank of India plunged sharply by over 8 per cent on Wednesday, on concerns about its exposure to Kingfisher Airlines and reports about public sector lender giving fresh loans to the debt-ridden carrier.
Vijay Mallya-promoted Kingfisher Airlines has turned second time lucky; the state-run Bharat Petroleum Corporation (BPCL) has granted it a three-month reprieve to pay jet fuel dues. KFA owes BPCL Rs 220 crore (after adjustment of interest) for fuel dues.
DIAL has filed four cases against Mallya over KFA's cheques totalling Rs 7.5 crore not being honoured.
Kingfisher Airlines has objected to being identified as a 'wilful defaulter' by state-run UCO Bank.
A Hyderabd court issued a non-bailable warrant against Kingfisher as well as Mallya on Friday in a cheque bounce case, said a Times Now report.
A debt recovery tribunal in India ruled that Rs 6,200 crore of Vijay Mallya's dues -- Rs 5,000 crore as principal and Rs 1,200 crore as interest -- was payable. Mallya claims that out of the sum due, Rs 3,000 crore had already been recovered by the claimants.
Bankers and the senior management are expected to convene another meeting later this month.
According to sources, the airline has requested the consortium for a working capital support of Rs 200-300 crore (Rs 2-3 billion) and individual banks are expected to take a call on this in the next few days.
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.
Creditors are fighting to get back Rs 600 crore, KFA employees not paid for months.
The consortium might get about Rs 1,000.
Kingfisher had been asked to give its repayment plan in that meeting, failing which the lenders would not be shy of starting the process to sell its assets pledged with them, bankers said.
An open letter written by women employees of KFA alleged that the company did not pay salaries
He still owes hundreds of crores to OMCs.
Mallya, who is wanted in India on alleged fraud and money laundering charges amounting to an estimated Rs 9,000 crore, also said all his companies have effectively ceased operations and manufacturing following the lockdown in India.
South Korea's faint hopes of reaching the last 16 of the World Cup have faded further with news that captain Ki Sung-yueng will miss their final group game against Germany.
The 62-year-old former Kingfisher Airline boss' defence team, led by Clare Montgomery, opened the day by branding the government of India's evidence presented in the case as "utterly unfounded".
Sources said Mallya has also been asked to furnish documents related to his personal finances
Mallya has denied that he had fled India and said he would comply with laws.
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.
Kuwait, home to influential sports power broker Sheikh Ahmad Al-Fahad Al-Sabah, has been threatened with a ban by FIFA because of government interference in the running of the local football association.
The 225-seater plane was later converted to 25-seater plane by Vijay Mallya for his personal use.
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.
The former liquor baron owes several banks a total of as much as Rs 9,000 crore
The Enforcement Directorate had asked for financial details from both public and private sector banks and a part of these details were submitted last week
The airlines had pledged the trademarks as collateral with banks at the time of taking loans from them
The Goa villa, Mumbai office could be put on the block.
A consortium of Indian banks led by the State Bank of India (SBI) on Tuesday moved a step closer in their attempt to recover debt from loans paid out to Vijay Mallya's now-defunct Kingfisher Airlines after the high court in London upheld an application to amend their bankruptcy petition, in favour of waiving their security over the embattled businessman's assets in India. Chief Insolvencies and Companies Court (ICC) Judge Michael Briggs handed down his judgment in favour of the banks to declare there is no public policy that prevents a waiver of security rights, as argued by Mallya's lawyers. At a virtual hearing, July 26 was set as the date for final arguments for and against granting a bankruptcy order against the 65-year-old Mallya after the banks accused him of trying to "kick matters into the long grass" and called on the "bankruptcy petition to be brought to its inevitable end".
The consortium of 17 banks, led by SBI, has an outstanding of over Rs 7,000 crore (Rs 70 billion) from the carrier.
Lenders to Kingfisher Airlines (KFA) will meet its promoter, Vijay Mallya, and the rest of the brass on Monday, to chart a way forward for the grounded airline.
Arun Mishra takes over as Director General of Civil Aviation at a time when questions are being raised on its leniency with airlines. Being also grossly understaffed, it faces an International Civil Aviation Organisation safety audit this December. The new DG talks about these and other issues.
On Saturday, bankers met the KFA management in yet another inconclusive meeting.
The agency is also investigating the overall financial structure of Kingfisher Airlines.
He sold 8.84% stake for Rs 55 crore based on average stock price in September quarter.
The company's meeting with the striking employees failed to resolve the deadlock over unpaid salaries.
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.
Cash-strapped Kingfisher Airlines owed over Rs 5,600 crore (Rs 56 billion) to public sector banks as on February this year.
KFA plans to raise $250 million (about Rs 1,100 crore) through GDRs and Rs 500 crore (Rs 5 billion) through a domestic issue in the next couple of months.
By registering the fresh case, ED wants to strengthen its probe against the beleagured liquor baron and expedite a slew of actions it has initiated against him
"On-time performance is no longer a luxury, it is a necessity. On-time service, too, is said to have helped IndiGo become the second-biggest airline. People fly to be on time and for point-to-point travel. IndiGo seems to have got its fundamentals right," says Amber Dubey, director (aerospace & defence) at global consultancy firm KPMG.
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