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Aug 09, 2012, 01.18 PM IST
Certain aircraft lessors and bankers to ailing Kingfisher Airlines (KFA) have invoked corporate guarantees given by Vijay Mallya-led United Breweries (Holdings) and negotiations are on over the issue.
As on June 30 this year, the total corporate guarantees to banks and aircraft lessors stood at Rs 8,919.86 crore, according to UB Holdings' auditor Vishnu Ram & Co.
"Certain aircraft lessors and bankers have invoked the corporate guarantees given by the company (UB Holdings) on behalf of KFA. The total amount invoked and outstanding as on 30-06-2012 is Rs 835.77 crore and KFA is under negotiation in this regard with beneficiaries," the auditor report said.
United Breweries (Holdings), along with its subsidiaries, has an overall exposure of Rs 13,014.17 crore in Kingfisher Airlines (KFA), it added.
The auditor also said KFA is "under severe financial constraints and has considerably scaled down its operations".
In its quarterly results filed on BSE, United Breweries (Holdings) said: "Certain corporate guarantees have been invoked and Kingfisher Airlines Ltd is under negotiation in this regard with the beneficiaries."
Besides this, United Breweries (Holdings) said other exposures to KFA include Rs 2,114.28 crore in investment in equity and other receivables of Rs 165.62 crore.
Also, the company had given an advance of Rs 1,814.41 crore to KFA, the filing said.
Earlier this week sources had said lessors wanted to take six aircraft back as KFA had defaulted on rentals.
However, the Airport Authority of India (AAI) had refused to allow the lessors to take back the aircraft.
Following this, one of the lessors had sent a legal notice to AAI for not passing the releasing order. AAI's contention was that it could not let the aircraft go, as it too had to recover dues of about Rs 300 crore on account of landing and parking fees from the near-bankrupt KFA.
The airline, which has not paid salaries to its employees for the past five months (some have not been paid for six months), has been defaulting on payments to AAI, oil companies, aircraft leasing companies and the government tax authorities.
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