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Friday, 25 July 2014

Kingfisher Airlines set to be declared a wilful defaulter by its lenders

New Delhi: Kingfisher AirlinesBSE 2.94 % is set to be declared a wilful defaulter by its lenders, which could mean promoter Vijay Mallya facing criminal proceedings, being unable to set up any new ventures for five years and getting barred from raising money from financial institutions.

KingfisherBSE 2.94 % Airlines owes about Rs4,022 crore to a consortium of 17 lenders led by State Bank of IndiaBSE 0.61 % (SBI), which is close to declaring the company a wilful defaulter, said two bank officials aware of the development. The process involves uncovering diversion of funds by borrowers, something which was detected by Ernst & Young during its forensic audit of Kingfisher Airlines, the officials told ET. The airline hasn't flown since October 2012, grounded by its inability to pay employees and subsequently losing its licence.
Read news in full 24/07/14 Dheeraj Tiwari/Economic Times

 

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