InvestorQ : On what basis can the creditors file to liquidate United Breweries, which is now an independent company?
Katherine Gonsalves made post

On what basis can the creditors file to liquidate United Breweries, which is now an independent company?

Answer
image
rhea Babu answered.
3 months ago
Follow

This does not refer to the liquidation of United Breweries which has been bough over by Diageo. This pertains to the High Court order to wind up United Breweries Holdings Ltd or UBHL. This is the holding company through which stake in UB is held.

The Supreme Court dismissed the plea made by United Breweries Holdings against the winding up of the company for recovery of dues from Vijay Mallya. This plea was made on the ground that the ED had already attached most of the properties of UBHL.

While the banks have already recovered Rs.3600 crore till date via sale of specified assets of Vijay Mallya, as confirmed by the banks, the SBI led consortium of banks still has to recover another Rs.6400 crore from Vijay Mallya towards Kingfisher Airlines dues.

Even as late as a few months back, Vijay Mallya had offered a settlement with the banks which had been rejected by the Committee of Creditors. United Breweries Holdings or UBHL had guaranteed loans taken by Kingfisher Airlines from banks so the loan becomes its liability too.

1 Views