Kingfisher hit by further lawsuits including a criminal one

Victoria
By Victoria May 15, 2013 13:41

Kingfisher hit by further lawsuits including a criminal one

The state-run Airports Authority of India said yesterday it has filed two lawsuits against Kingfisher Airlines in a Mumbai court, seeking 3 billion rupees ($55 million) of unpaid airport-usage fees from the now-grounded carrier. One of the suits also seeks filing of criminal charges against Kingfisher because checks for 1.17 billion rupees were returned by banks due to insufficient funds in its accounts, Airports Authority of India Chairman V.P. Agrawal told reporters. The 3 billion rupees it wants Kingfisher to pay is excluding the payments that the airline’s banks had guaranteed, Agrawal said.
The Airports Authority of India manages 40 airports and controls air traffic in India’s airspace, you cannot run within the Indian market without their support.
At least 10 of Kingfisher’s creditors—including ATR, BNP and Rolls Royce & Partners Finance Ltd. have petitioned the Karnataka High Court to shut down the airline and United Breweries (Holdings), a key shareholder of the airline and guarantor of its debt. The creditors want to sell the companies’ assets to recover the money Kingfisher owes.
The airline’s banks recently sent it a legal notice to take over the real-estate assets it pledged as collateral against loans. The banks also plan to invoke guarantees given by Kingfisher Chairman Vijay Mallya and its group companies.
It is sickening to a growing number of observers that Vijay Mallya should be seen each week living it up with his F1 team while he causes financial pain to so many. Maybe now the Indian government are going to crack down on this shambles.

Victoria
By Victoria May 15, 2013 13:41
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