Companies

United Bank of India names United Breweries a wilful defaulter

Our Bureau Kolkata | Updated on November 25, 2017 Published on December 02, 2014

United Bank, the airline and its guarantor failed to make a payment of around ₹65 crore and its interest.



United Bank of India has identified Vijay Mallya’s UB group holding company, United Breweries (Holdings) Ltd (UBHL), as a wilful defaulter.

The defaulter tag comes after the group’s grounded airline, Kingfisher Airlines and its guarantor UBHL, failed to repay loans taken by the carrier.

The bank had declared Kingfisher; its three directors, and Mallya as “wilful defaulters” in September this year.

According to Deepak Narang, Executive Director, United Bank, the airline and its guarantor failed to make a payment of around ₹65 crore and its interest. This amount was lent outside a consortium of lenders that has given money to the airline.

The consortium, led by State Bank of India (SBI), has to recover loans to the tune of over ₹6,500 crore from Kingfisher.

United Bank has an exposure of ₹350 crore in the consortium lending.

“Based on the analysis of their balance sheet, we have identified UB Holdings as a wilful defaulter. The matter will soon be taken up before the grievance redressal committee,” Narang told Business Line.

UBHL’s response to the bank’s notice has not been satisfactory and, hence, the matter is expected to be taken up before the grievance redressal committee soon, he added.

Published on December 02, 2014
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