Kingfisher Airlines Case: Lenders Led By SBI To Sell Pledged Shares
The debt recovery tribunal at Bengaluru has permitted the sale of shares pledged to lenders of the now defunct Kingfisher Airlines Ltd., in a bid to recover loans.
The tribunal, according to a sale proclamation published on its website on June 7, has allowed the sale of 3.96 crore shares of United Breweries Ltd., 25 lakh shares of United Spirits Ltd. and 22 lakh shares of McDowell Holdings Ltd. through block deals on June 23.
In a separate sale proclamation, the tribunal also announced sale of another one crore shares of United Spirits on June 25.
The value of the pledged shares, according to their last closing price, works out to nearly Rs 6,272 crore. The share sale, the proclamation said, will help with recoveries against loans worth Rs 6,203 crore, costs and interest at 11.5% per annum applicable from June 2013 till the date of realisation.
In the event of failure of the block deals on June 23 and 25, the shares will be sold through bulk or retail sales on subsequent trading days, the tribunal said.
The recovery of loans from Kingfisher Airlines will help lenders led by State Bank of India close one of India's most famous cases of corporate debt default. The airline was grounded in 2012, after it ran into severe debt problems. Lenders have been attempting to recover their dues since then. Among other large lenders to the airline are Punjab National Bank, IDBI Bank and Bank of Baroda.
Apart from the recovery proceedings, the Kingfisher Airlines case is also being investigated by the Central Bureau of Investigation and the Enforcement Directorate for fraud.
As part of their investigations, the CBI previously arrested former officials of IDBI Bank Ltd. for poor credit practices and fraudulent dealings in extending a Rs 900-crore loan to the airline.
In 2016, Mallya, the airline's promoter, moved to London amid recovery proceedings. He was then tagged as a fugitive economic offender. The Indian authorities have been attempting to extradite him back to the country to pursue legal action.
-
Talking Points This Week: Leadership Shock At Nvidia, Earnings Strength, And The Fog Over Hormuz
The Anthropic IPO pricing and first trading day, Nvidia's upcoming earnings, and any fresh signals from Iran will set the tone for the following week.
-
Signature Play: The Classic Cocktail Is Dead. Or Is It?
Classic cocktails are disappearing from India's cocktail menus. But they're still being ordered, taught to bartenders and borrowed from. So, who's really having the last drink?
-
A New Samvat Wishlist: Inclusive Prosperity And Human Development
India has strengthened its economic foundations through infrastructure, digital access and enterprise. Its next growth chapter must deepen productivity, create better livelihoods and widen participation in prosperity.
-
Love, Sex Aur Dhokha: The Audacious Plot To Spy On Jensen Huang
A Taipei dinner, a Singapore chip buyer and a suspected Chinese asset: inside the alleged spy operation that got close to NVIDIA's Jensen Huang.
-
Ten Things I Learnt This Samvat
Patience can be a trap. Cheap stocks can stay cheap. Leverage can wipe you out. What did Samvat 2082 teach us? Niraj Shah writes on 10 lessons from the year gone by.
-
Talking Points This Week: Tech Nerves, FII Buying, And A Faraway Banking Shock
The global markets are not shining this Diwali. The exception in the large markets is, India.
-
Midterm Rally Lasted A Day. The Hard Reality Of A Divided US May Last Two Years | Opinion
Between a contested AI boom, a debt ceiling that arrives in 2027 and a president with every incentive to act alone, the next two years may prove more volatile than the first day's rally suggests.
-
Blue Wave Will Derail the AI Trade but Won't Dismantle the AI Era | Unhedged Position
The Democrats' sweep of the US Congress will see politics collide with economic forces both over the long and short term.
-
It's Time To Take The GST Council's Bet On Trust Global
Payment records can prove India's services exports, and clear, proportionate rules can bring foreign digital sellers into the tax net.
-
Opinion | India at 38: From Innovation Overperformer to Innovation Powerhouse
India now has 453 VC-backed deep science startups, 18 of them late-stage, after 117 percent growth since 2020. Laurus Labs, at USD 9.3 billion, is the most valuable deep science company in any middle-income economy outside China.
