Wadia Group firm took $300 million loan from Deutsche Bank: Report
In the same period, the company created fixed deposits worth $190 million which were used to secure funds for Go First from Deutsche Bank.
- May 12, 2023,
- Updated May 12, 2023 10:13 AM IST
A Wadia Group company based in Mauritius, Leila Lands, took loans worth $300 million from German lender Deutsche Bank during the financial years 2021 and 2022. In the same period, the company created fixed deposits worth $190 million which were used to secure funds for Go First from Deutsche Bank.
Leila Lands took the loan by creating a charge on the account of the London-based parent of Britannia Industries, as per filings by Leila Lands and Associated Biscuits International Ltd, that owns 44.76 per cent stake in Britannia Industries, as accessed and reported by the Economic Times.
Leila Lands said that it raised money from Deutsche Bank but also said that it had no connection with the group’s shareholding in Britannia Industries. A Leila Lands spokesperson told the daily that they have, over time, made significant equity investments in Go First as promoters.
The spokesperson said that the company provided security to Deutsche Bank by way of fixed deposit of $191 million out of its own accumulated retained cash earnings. A loan of $300 million has been provided by Deutsche Bank to Leila Lands for use in corporate purposes and investments, said the spokesperson, further adding that ABIL provided a lien on its inflows but it has no connection with the Britannia shareholding.
Meanwhile, Go First acknowledged the loan to the daily, but said that it had no knowledge of the fixed deposits. Go First said that it has no connection with Britannia Industries.
The beleaguered airline, in its plea with the National NCLT, said that it defaulted on payments of Rs 2,600 crore to aircraft lessors, and Rs 1,200 crore to vendors.
Also read: Go First's woes mount as govt decides to re-allocate its Hajj flights
A Wadia Group company based in Mauritius, Leila Lands, took loans worth $300 million from German lender Deutsche Bank during the financial years 2021 and 2022. In the same period, the company created fixed deposits worth $190 million which were used to secure funds for Go First from Deutsche Bank.
Leila Lands took the loan by creating a charge on the account of the London-based parent of Britannia Industries, as per filings by Leila Lands and Associated Biscuits International Ltd, that owns 44.76 per cent stake in Britannia Industries, as accessed and reported by the Economic Times.
Leila Lands said that it raised money from Deutsche Bank but also said that it had no connection with the group’s shareholding in Britannia Industries. A Leila Lands spokesperson told the daily that they have, over time, made significant equity investments in Go First as promoters.
The spokesperson said that the company provided security to Deutsche Bank by way of fixed deposit of $191 million out of its own accumulated retained cash earnings. A loan of $300 million has been provided by Deutsche Bank to Leila Lands for use in corporate purposes and investments, said the spokesperson, further adding that ABIL provided a lien on its inflows but it has no connection with the Britannia shareholding.
Meanwhile, Go First acknowledged the loan to the daily, but said that it had no knowledge of the fixed deposits. Go First said that it has no connection with Britannia Industries.
The beleaguered airline, in its plea with the National NCLT, said that it defaulted on payments of Rs 2,600 crore to aircraft lessors, and Rs 1,200 crore to vendors.
Also read: Go First's woes mount as govt decides to re-allocate its Hajj flights