United Breweries Group chairman Vijay Mallya on Tuesday said that the repeated pronouncements?by the lenders? consortium about the recovery process had scared away potential investors, thereby affecting their own chances of recovering the money.
?The repeated pronouncements by the bank chairman (hinting at SBI) that they were recovering from us obviously scared the potential investors. There ought to be client confidentiality and banks should help the borrowers recover their money; rather they have successfully driven away investors,? Mallya said addressing the shareholders of KFA at the company?s annual general meeting.
Mallya said that the lenders? consortium did not accept his revival plans and were not willing to negotiate, rather wanting the UB Group to accept bank?s plan.?
The consortium of lenders led by State Bank of India, which is looking to recover dues of over R6,000 crore, has so far recovered around R544 crore by selling pledged shares in the open market. Besides, it recently took possession of the airline?s headquarters in Mumbai that was part of the collateral.
Mallya also said that UB Group has invested R3,499 crore into KFA and anyone who suggests that the group has not done its fair bit for the carrier, is in the wrong. ?I wear two hats. One as KFA chairman and other as head of UB Holdings. I have invested R3,499 crore into the airline and want to recover my own money. I have much more interest than anybody else,? said Mallya.
Mallya said that the lenders approaching the court and restraining United Breweries Holdings from selling United Spirits shares to Diageo has impacted the group by eroding significant market value of the UBHL shares in USL.
?It is sad that employees have to suffer. It is sad that anybody has to suffer. But the reasons also has to be appreciated. I do not believe that anybody can point an accusing finger at me or the management or board of directors that we wilfully?denied our employees or that we are ignoring their hardship,? said Mallya.
?Unfortunately in this industry, the belief that disruption is a cure is the worst illness ever experienced. There was no need for suspending the operation of the airline. If the operations would not have been suspended the licence would not have been suspended. ?Their refusal to work forced us to stop operation,? said Mallya.