With the Debt Recovery Tribunal set to rule on Monday on whether lenders will have the first right to Diageo’s $75-million payout to Vijay Mallya, the former liquor baron stated that he has been in talks with lenders for a settlement.
In a press statement issued late on Sunday, Mallya said he has been making efforts to reach a one-time settlement with the banks, and to that end, “I have had three meetings and had follow up calls in the recent past and my efforts will continue — this settlement would be based on additional payments to the banks. Personally I am not a borrower or a judgment defaulter.”
He said, “Kingfisher was launched on the basis of a viable business plan, but despite every effort, it was an unfortunate commercial failure.
“The truth about Kingfisher Airlines and its financial stress due to external factors has been reported by SBI to the RBI in their letter dated 31st January 2012. A consortium of banks loaned funds to Kingfisher Airlines but these loans were secured by blue chip securities.
“After the closure of the airline, the banks and their assignees have recovered ₹1,244 crore from sale of pledged shares. In addition ₹600 crore is lying deposited in the Karnataka High Court (since July 2013) and a further sum of ₹650 crore belonging to United Breweries Holdings has been deposited in the Karnataka High Court since early 2014, being sums realised from the proceeds from the sale of shares in United Spirits to Diageo Plc in July, 2013.
“Thus, the aggregate cash recovery/security available is ₹2,494 crore.”