Business Today

SBI chairman says will go full throttle to recover dues from Kingfisher Airlines

State Bank of India (SBI) Chairman Pratip Chadhuri has said banks will continue to sell pledged shares of Kingfisher Airlines and invoke all other securities till they get back the dues.

BT Online Bureau   Mumbai     Last Updated: April 17, 2013  | 00:00 IST

State Bank of India (SBI) Chairman Pratip Chadhuri has said banks will continue to sell pledged shares of Kingfisher Airlines and invoke all other securities till they get back the dues.

SBI leads the 17-bank consortium of lenders to the grounded airline.

"We have given instructions to recover and enforce all the securities. Our intention is to sell everything... all means of recovery (will be employed)...nothing would escape. Till such time as we will get back our dues in full, we will press our full recourse on all the securities that we possess," Chadhuri said.

It may be noted that airline promoters had unsuccessfully asked the Bombay High Court to prevent the banks from selling pledged shares.

When asked about the Rs 11,000-crore Diageo-USL deal - which reportedly was the reason why the Kingfisher Airlines management approached the court - and if that will prevent banks from enforcing other actions, Chaudhuri replied in the negative.

FULL COVERAGE:Kingfisher crisis

Kingfisher Airlines promoter Vijay Mallya had signed a deal with the UK's Diageo to sell his controlling stake in United Spirits Ltd (USL). Diageo will also pick up another 26 per cent through mandatory open offer.

"We are now indifferent to that. Our first priority is to recover the loans... Any investor comes in with eyes open," he said.

Chaudhuri added that the banks are not hurting any body's interests as they are selling the USL shares above the open offer price of Rs 1,440 per share.

"Open offer is at Rs 1,440, the current market price is higher, so we are not depressing the price," he said.

The SBI chairman said the banks will first sell the shares, which will be followed by other liquid assets, then fixed assets and finally the personal assets.

With inputs from PTI

Youtube
  • Print

  • COMMENT
BT-Story-Page-B.gif
A    A   A
close