Kingfisher Airlines (KFA) Limited, a holding company of Vijay Mallya, said on Monday that it is not liable to repay over ₹6,000 crore of debt to the consortium of lenders as they had breached the terms and conditions of the Master Debt Restructuring Agreement (MDRA) between both parties, causing needless damage to the firm’s business in the process.
The KFA counsel told the Debt Recovery Tribunal that according to the terms and conditions of the MDRA, KFA was to get working capital from the lenders to continue its airline business, which the lenders violated, leading to further financial problems for the airline.
‘Press statements hurt’
The counsel also submitted that the lenders had, with “unnecessary” press statements, damaged KFA’s business prospects by breaching the terms of confidentiality under the MDRA.