Monday, March 11, 2013

NEWS | Srei to liquidate Rs 430 cr Kingfisher debt post Diageo deal

Financial services major Srei group plans to liquidate its Rs 430 crore loan exposure to Kingfisher Airlines soon after closure of a proposed majority takeover of another UB Group firm United Spirits by Diageo.

Srei Venture Capital, part of the Srei Infrastructure Finance Ltd, last year acquired loans worth Rs 430 crore given by ICICI Bank to the UB group's battered airline venture.
"The security value (of the loan) has substantially risen and we are well covered. It was not a stupid decision which everyone thought it was," Srei Chairman and Managing Director Hemant Kanoria said.
Both Kingfisher Airlines and United Spirits Ltd (USL) are part of Vijay Mallya-led UB Group and a number of loans availed by the debt-ridden air carrier are backed by shares and other assets of various group companies, including USL.



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