SBI: Have received dues settlement offer from Kingfisher

Wednesday, Mar 30, 2016,17:31 IST By Metrovaartha A A A

Mumbai | Lenders to defunct Kingfisher Airlines today said they have received an offer to settle loan from the company and they will examine the proposal. Liquor baron Vijay Mallya and Kingfisher Airlines today submitted a proposal in the Supreme Court for repayment of Rs 4,000 crore out of the loan amount of Rs 6,903 crore to the consortium of banks, led by State Bank of India, by September this year.

The consortium of banks led by SBI confirms receipt of an offer for settlement of dues from Kingfisher Airlines Ltd. The bank, along with other consortium members, will examine the same, SBI said in a statement here today. The statement, however, did not disclose the amount Mallya has offered to repay to the banks.

Today’s proposal for repayment in the Supreme Court was submitted by Mallya, Kingfisher, United Breweries (Holdings) Ltd and Kingfisher Finvest (India) Ltd. A bench comprising Justices Kurian Joseph and R F Nariman allowed the consortium of banks a week’s time to respond to the proposal and posted the matter for further hearing on April 7.

On March 9, the government had informed the apex court that Mallya, who is facing legal proceedings for allegedly defaulting on loans of over Rs 9,000 crores from various banks, had left the country a few days back. Mallya and Kingfisher Airlines owe Rs 7,800 crore to the consortium led by SBI, which had an exposure of over Rs 1,600 crore to the airline.

Other lenders include Punjab National Bank, Bank of Baroda, Canara Bank, Bank of India, Central Bank of India, Federal Bank, UCO Bank and Dena Bank. Last year, SBI declared Mallya as wilful defaulter while Punjab National Bank had also declared him, his group holding company United Breweries Holdings and Kingfisher Airlines as wilful defaulters last month.

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