Kingfisher crisis: United Bank of India files winding-up petition against UB Holdings

While the High Court has admitted the petition, filed last week, a date for the hearing is yet to be scheduled, sources said.

 

As the promoter of Kingfisher Airlines, UB Holdings had given corporate guarantee for the loan given to the carrier.

 

A senior official of the government-owned bank -- which has about Rs 400 cr exposure to the airline -- confirmed the development to NDTV Profit.

 

"We will take all steps to recover dues. We also have other collateral, which we will try to use to recover dues. SBI, being the lead bank, is already looking to sell shares pledged with lenders and may invoke the SARFAESI Act later," the official added.

 

Earlier this month, the board of State Bank of India, the lead banker in the consortium, decided to send a recall notice to company. The public-sector lender is also planning to sell shares of United Spirits, part of the UB Group, as part of its process to recover dues worth over Rs 7,000 crore. Kingfisher has over Rs. 15,000 crore in the form of debt, accumulated losses and various dues.

 

The 17-bank consortium is also likely to invoke The Securitization and Reconstruction of Financial Assets and Enforcement of Securities Act (SARFAESI) for recovery of other pledged assets, which include a Villa in Goa and Kingfisher House in Mumbai, the bank official told NDTV.

 

The move comes after the aviation regulator allowed lessors to retrieve deregistered aircraft leased to the airline, which lost its flying licence on December 31 last year after it failed to come up with a revival plan following a strike by engineers and pilots that saw the carrier's entire fleet grounded since October. Kingfisher has so far been unable to submit a credible plan to the regulator. Lenders, airport operators and tax authorities are trying to recover some $2.5 billion from the airline.