Asia & Australia

February 08, 2017

Wind Up United Breweries To Pay Dues Of Kingfisher, Says HC

kingfisher airlines, UB breweries

The Karnataka High Court ordered winding up of United Breweries (Holding) Ltd., to pay the dues of Kingfisher Airlines. United Breweries is the 102-year-old parent company of the UB Group, and has failed to pay admitted liabilities to the unsecured and the secured creditors, including the banks, as per the corporate guarantees extended to Kingfisher Airlines Ltd. (KFA).

Justice Vineet Kothari delivered the verdict, in a sitting held through video conference facility from the Dharwad Bench, while allowing 10 petitions for winding up filed by unsecured creditors and suppliers like IAE International Aero Engines AG, Rolls-Royce & Partners Finance Limited, London, BNP Paribas, France, and secured creditors, a group of banks led by SBI. As per the court’s calculation, the total due amount from UBHL is around Rs 7,000 crore.

Referring to financial reports and constant increase in losses and complete erosion of net worth and reticent refusal of UBHL to square up its “guarantee obligations” and “raising sham and moonshine defences to avoid winding up, the Court said that “UBHL is a commercially insolvent company and is unable to meet its admitted financial obligations and square up its admitted liability towards the petitioning creditors.”

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