Setback for Vijay Mallya as court accepts Kingfisher Airlines winding-up petition

Kingfisher AirlinesKarnataka High Court has given Kingfisher Airlines a few more weeks to revive the carrier.

In another setback to liqour baron Vijay Mallya, the Karnataka High Court on Friday admitted a winding-up petition filed against Kingfisher Airlines Ltd, seeking liquidation of the carrier. Aerotron, a UK-based aviation services firm, in its petition has said that Mallya's airline owes it a sum of Rs 37 crore, or $6 million.

Aerotron is among several companies that have filed winding-up petitions in the Karnataka High Court against the airline. The airline, which has been grounded for more than a year, in a submission to the court has estimated its assets to be worth a little less than Rs 612 crore including the Mumbai headquarters.

The court has also continued the stay order against State Bank of India taking possession of the company headquarters, the Kingfisher House, giving the airline a few more weeks in it attempts to revive the carrier. The court has reserved its judgment on the petition for another day.

SBI had moved the magistrate court in Mumbai to take possession of the building under the Sarfaesi Act, but KFA obtained a stay order on grounds of ongoing due diligence and other technicalities.

The Karnataka High Court, in a separate case, in November, had admitted a winding-up petition filed by BNP Paribas against United Breweries (Holdings) Ltd, laying  claim to an amount of $26.63 million under corporate guarantee, which the company had not paid. UBHL is the holding company of the UB Group, to which Kingfisher belongs.

Mallya during the company's annual general meeting in September had claimed that he was in talks with a foreign investor and a decision on this would be reached in 90 days. 

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