The Rs 4,000 crore partial settlement offer by Vijay Mallya has left the SBI-led consortium of banks unimpressed. The lenders have asked that the amount be doubled, bankers familiar with the matter told The Economic Times.
The consortium of 17 banks are trying to recover over Rs 9,000 crore in dues stemming from loans taken by the now-defunct Kingfisher Airlines.
Last week, Mallya had proposed a Rs 6,000 crore settlement out of which Rs 2,000 crore was tied up with another lawsuit. Of the Rs 4,000 crore offer proposed before the Supreme Court, Rs 2,000 crore was to be paid upfront and the rest subject to conditions. Bankers have to respond to the proposal at the next Supreme Court hearing scheduled for 7 April.
Lenders have decided that they want a minimum of Rs 4,900 crore to be paid upfront, which is the principal loan amount. Further, they would demand interest component as well. Most importantly, we also want cash on the table and we do not want to operate as their recovery agent.Banker quoted by The Economic Times
Much of the proposal, bankers say, is filled with caveats, raising doubts if the assets included can actually help raise the stated amount.
It suggests that shares of companies pledged against loans be sold off. From this, banks will be able to get about Rs 2,000 crore after paying off those who loaned money against the equity. It’s not clear whether these are shares the banks are already claiming as part of guarantees provided by United Breweries Holdings.The Economic Times Report
(At The Quint, we are answerable only to our audience. Play an active role in shaping our journalism by becoming a member. Because the truth is worth it.)