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Thursday 7 April 2016

Banks reject Mallya's repayment offer; disclose assets, says SC


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Lenders of bankrupt Kingfisher Airlines (KFA) have rejected the Rs 4,000 crore repayment offer that its chief Vijay Mallya had made in a Supreme Court hearing last week. The banking consortium also told the court the liquor baron had made another offer last evening, which also had rejected, though they did divulge details of the second offer. Kingfisher owes banks about Rs 10,000 crore, which comprises of principal of about Rs 6,000 crore along with accrued interest. At the hearing last week, Mallya's counsel offered to pay Rs 4,000 crore along with another an additional Rs 2,000 crore, subject to settlement of a claim Kingfisher has filed against GE. Lenders told the court that they were open to a meaningful negotiation, they expect at least the principal of Rs 6,000 crore to be paid, along with some portion of the interest. They further added that for any settlement to take place, Mallya must show bonafides to court, disclose all his assets and preferably be present in court. 


The court agreed with the banks' contention saying that Mallya should establish bonafide by depositing a token amount in court, disclose all assets and sought clarity from his counsel on when he can return to India and appear in court. To this, Mallya's counsel said that he was not withholding information on assets, that a similar disclosure had been made to court in 2010, and will be updated. The counsel further said that Mallya had sought time to reply to banks' rejection of his proposal till April 21. The case will now be heard on April 26.


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