Mallya seeks out-of-court settlement with creditors | business | Hindustan Times
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Mallya seeks out-of-court settlement with creditors

business Updated: Sep 12, 2013 23:44 IST
HT Correspondent
Vijay Mallya

The debt-ridden United Breweries Group, led by liquor baron Vijay Mallya, hopes for an out-of-court settlement with some of its creditors, who filed winding up petition — a move that seeks compulsory liquidation of the company.

Addressing shareholders at the annual general meeting in Bangalore, group chairman Mallya said, “there are five winding up petitions that have been filed before the company court in Bangalore. And, out of these five, we have serious counter claims against three of the petitioners, which basically leaves two petitioners with whom we are in dialogue for an out of court settlement”.

UB Group is estimated to have a debt of over `7000 crore, mainly on account of its loss-making airline venture Kingfisher.

Mallya, also said that the court has given the go-ahead for the Diageo deal. The UK-based Diageo has acquired 25% stake in UB Group’s flagship company United Spirits for Rs.5,236 crore. “The honourable court was pleased to grant us permission to go ahead with the Diageo deal but directed us to deposit Rs.250 crore in the court to take care of these 5 winding up petitions, which we have dutifully done,” said Mallya.