Karnataka High Court asks United Breweries to submit concrete plan to repay loans
The company, which owns Vijay Mallya’s UB Group, told the bench that the total value of its assets was enough to clear dues, but the court was not satisfied.
The Karnataka High Court on Thursday asked United Breweries Holdings Limited to submit a concrete plan to repay the loans it owes several banks, Deccan Herald reported. The company, which owns businessman Vijay Mallya’s UB Group, told the court that the total value of its assets is enough to clear its dues, but the court asked for a satisfactory offer.
The company told the court that its assets and shares were worth Rs 12,400 crore currently, while Kingfisher Airlines owes only Rs 6,000 crore, excluding interest, to banks, The Times of India reported. United Breweries Holdings was the parent company of the defunct Kingfisher Airlines and is the corporate guarantor for the loans.
The company said it was unable to submit any proposal to repay loans because the Enforcement Directorate had attached some of its properties.
The High Court’s division bench headed by Chief Justice Dinesh Maheshwari adjourned the hearing to April 2. The court said share prices were too uncertain to be relied on, and that any offer had to be satisfactory and concrete enough to proceed further.
In February 2017, the High Court had ordered United Breweries Holdings Limited to be shut down as it had failed to pay its creditors despite receiving several notices. The court had said the company’s debt was far greater than its net worth and assets.