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Friday, 20 June 2014

United Spirits getting caught in maze of Kingfisher Airlines defaults

Bangalore: It is a situation which may require Diageo's financial prowess to untangle the maze in which United Spirits is getting sucked into due to the mess which Kingfisher Airlines has put UB Group into. An advance of little over to Rs 1,350 crore to UB Holdings (the holding company of UB Group), from United Spirits, which presumably went to fuel Kingfisher Airlines, has now come to haunt - United Spirits, India's largest spirits company, in which Diageo has a strategic management control.

In a disclosure to the markets, United Spirits has said that they are awaiting certain information from UB Holdings for determining the treatment in the company's accounts of such loan together with the applicable interest accrued until March 31, 2014. As a result of this and a couple of other key financial issues, United Spirits has been forced to defer publishing its audited number for the last fiscal 2013-14. UB Holdings, which has been under extreme stress due to the various corporate guarantees it had given to raise debt for the now-grounded Kingfisher Airlines, has been in protracted discussions with the clutch of lenders to buy more time.
Read news in full 17/06/14 Raghuvir Badrinath/Business Standard
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