Companies & Sectors
Hearing on winding up Mallya's holding firm adjourned till April 11

Creditors like French bank BNP Paribas and State Bank of India, lessors such as Rolls Royce and International Aero Engines and state-run oil marketing firm HPCL had jointly filed petitions in the high court in November 2013 after the cash-strapped airline and its holding firm UBHL failed to repay dues worth Rs.600 crore

 

The Karnataka High Court on Thursday adjourned the final hearing to April 11 on winding up petitions against United Breweries Holdings Ltd. (UBHL) of liquor baron Vijya Mallya for defaulting on loans to its defunct Kingfisher Airlines.
 
"Justice Arvind Kumar adjourned the case to April 11, as arguments on both sides could not be completed for want of time," a counsel, who appeared for the creditors, told reporters.
 
Creditors like French bank BNP Paribas and State Bank of India, lessors such as Rolls Royce and International Aero Engines and state-run oil marketing firm HPCL had jointly filed petitions in the high court in November 2013 after the cash-strapped airline and its holding firm UBHL failed to repay dues worth Rs.600 crore.
 
When the Paribas counsel appealed to the judge for giving priority to its petition as it was the first aggrieved party to approach the court in November 2012 for relief, Justice Arvind Kumar said justice would be done to all the petitioners as they were same in the eyes of law.
 
As the group's flagship company, the Mallya-controlled UBHL has equity stakes in United Breweries Ltd (UBL), the country's largest beer producer, and United Spirits Ltd., the country's largest liquor maker, now controlled by the British Diageo plc.
 
Though Mallya lost control over United Spirits Ltd., he still has controlling state (52.34 percent) in the holding firm, which was funding the grounded airline.
 
According to the Paribas counsel, the holding company borrowed $26.63 million from the French bank to purchase three aircraft for its airline but failed to repay the principal amount as well as interest on it.
 
"We have petitioned the court to order winding up the holding company as it failed to honour corporate guarantees it gave on behalf of the airline," the bank counsel said.
 
UBHL's employees, however, opposed winding it up as it would render them jobless and affect the group's other companies, including the profit-making UB Ltd.
 
A consortium of 17 state-run and private banks, led by the SBI, on March 8 moved the Supreme Court after it failed to get relief from the Karnataka High Court and the debt recovery tribunal against defaulter Mallya and his airline, which owns a whopping Rs.9,000-crore debt, including compound interest.
 
The apex court on March 9 served notice to Mallya and posted the case for hearing to March 30, although he left the country on March 2 and is learnt to be staying in London.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
 

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Government may consider stake sale in Air India: Report
According to reports, the government may appoint a committee to examine stake sale in Air India for meeting its revenue targets for next year
 
The government may examine the possibility of selling up to 49% of its stake in national carrier Air India, says a report from NewsRise citing an unnamed official.
 
According to the report, the government is planning to set up a committee, comprising four to five members from the finance ministry, ministry of civil aviation as well as cabinet secretariat and Air India that will discuss the asset sales for meeting the revenue targets in FY2017.
 
Few days ago, Mahesh Sharma, state minister for civil aviation told the Rajya Sabha that the national carrier is expected to make an operational profit of Rs8 crore by the end of this fiscal. RN Choubey, the secretary of civil aviation too had told reporters in Hyderabad that Air India will make a net profit in 2019.
 
During the April-September period, the airline reduced losses by half to Rs1,245 crore. Net losses are now projected to decrease by more than half to Rs2,636 crore in the 2016 financial year from a year ago. However, it still has accumulated losses of over Rs35,000 crore and a debt of over Rs45,000 crore. 
 
Air India, after ruling the skies for several decades is now positioned at third place behind private carriers, IndiGo and Jet Airways.  

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COMMENTS

Ramesh Poapt

2 years ago

i was a Tata enterprise decades back.Why the same was taken over by Govt? Anyway, it will save billions of public money every year. it is a proverb,jaha raja(sarkar)vypari, waha praja bhikhari..! and pro-aviation policy has already begun..

Budget hotels boosting online booking: Google report
New Delhi : Branded budget hotel chains in domestic hotel industry are driving the growth of hotel bookings online, revealed a report by Google India compiled by looking at the search trends for both domestic and international travel sector for the upcoming holiday season.
 
The report further revealed that Internet users in the country are lapping up the budget hotels online which is evident in the growth of Google search queries. Branded budget hotel queries in India are growing at 179 percent Year over Year ( YoY) in comparison to just 36 percent YOY growth in generic budget hotel queries. The overall queries for ‘Accommodations’ as a whole are growing at 37 percent YOY.
 
“Newer players in the segment have energised the travel vertical by unlocking a brand new inventory online. They have been quick to capitalise on the online demand with aggressive advertising spends in building their brands, which is leading to overall category growth for the Industry,” said Director Sales of Google India Vikas Agnihotri.
 
“We expect this segment to continue to see massive growth with leisure travel expected to pick up in the coming summer holiday season. As part of our own efforts to boost the sector, we’re sponsoring Great Indian Travel Festival which is currently live - to provide users a central destination for all the great holiday deals that are available online for the upcoming holiday season,” added Agnihotri.
 
In terms of top destinations searched for accommodation during March to June period of 2015, Maharashtra, Tamil Nadu, Karnataka, Goa, Rajasthan, Himachal Pradesh, Kerala and Delhi-NCR are the most searched destinations.
 
The survey also indicated that leisure destinations will be the next growth driver for branded budget hotel category as today out of the top 50 domestic destination searched, only 30% of destinations represent leisure travel.
 
As per industry estimates, the inventory in the budget hotel space is expected to grow further with both new and existing players expected to bring up to 10,000 new rooms online this year.
 
In terms of outbound data (International) compiled basis Google search queries Between January to September 2015, 25% of search queries are for International air tickets growing at 43% YOY while 22% of search queries are for International holidays growing at 30% YOY. 
 
UAE, USA and Thailand take the top positions for most searched international destinations with a healthy growth rate of over 35% YOY.
 
Search queries also reveal that the Indian travelers have taken a liking to niche travel destinations with Seychelles topping the chart followed by Hungary, Czech Republic, Russia, Greece and Norway.
 
Thailand was the most searched holiday destination between March to June 2015 followed by USA, UAE, Singapore and Maldives.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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