UB Holdings Chairman Vijay Mallya has denied that the company had defaulted on interest payments to United Spirits.
In a filing with the BSE, UB Holdings said it had entered into a loan agreement with United Spirits on July 3, 2014 under which there was an outstanding amount of ₹1,337.41 crore as of March 31, 2015. The loan is for a period of nine years and carries an interest rate of 9.5 per cent per year.
At an EGM of USL on November 28, 2014, the loan agreement between the company and USL was not approved. Consequently, the company did not account for any interest on the loan from October 01, 2014.
In July 2015, the loan which was to be repaid in instalments to start from November 9, 2018 was recalled by USL citing defaults in interest payments which has been denied by the company.