IDBI asks Kingfisher Airlines to pay back Rs 900 cr
Date: 17-05-2010IDBI has sent a notice to Kingfisher Airlines asking it to pay a total of Rs 900 crore, which includes a Rs 150-crore short-term loan. The letter has asked the airline to pay around Rs 900 crore by the middle of this week. Otherwise it might invoke guarantees issued by holding company United Breweries Holding and by Vijay Mallya himself. Mr Mallya denied that IDBI was calling back the loan.
The recall notice is also for Rs 750 crore debt, as Kingfisher has already defaulted on the Rs 150-crore shorter duration debt. According to sources, the airline has failed to pay interest both on the long-term loan (Rs 750 crore) and, interest and principal on the short-term debt (Rs 150 crore) according to the schedule, prompting the bank to send its missive. crackcrack