Vijay Mallya summoned over Rs 600 cr United Breweries (Holdings) debt

PTI Posted online: Monday, Sep 16, 2013 at 0000 hrs
Bangalore : The Karnataka High Court today directed UB Group Chairman Vijay Mallya to appear before it Tuesday in connection with a bunch of winding up petitions filed by creditors who are trying to get back close to Rs 600 crore from his company.

Justice Ram Mohan Reddy asked Mallya to appear in court and bring along his passport.

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Certain companies, including BNP Paribas, which are creditors to United Breweries Holding Limited had filed company petitions in the High Court seeking winding up of United Breweries (Holdings) Ltd as the holding company was unable to pay its debts.

UBHL, holding company of the UB Group, is contesting in the court the admission of six winding up petitions filed by aircraft lessors and financiers of crisis-hit Kingfisher Airlines Ltd last year.

The creditors are trying to get back close to Rs 600 crore and had almost stalled the share sale of UBHL's holdings in United Spirits Ltd to Diageo, global spirits major.

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However, the court had earlier granted approval to UBHL to go ahead with the share sale provided UBHL submitted Rs 250 crore as guarantees to it.

While UBHL has submitted the same, the court has been hearing the winding up petitions.

Mallya last week had expressed the hope of reaching out-of-court settlements with two of the five petitioners and said the company was having serious counter claims against three of the petitioners.