Liquor baron Mallya says in talks with banks to settle debt

Liquor baron Vijay Mallya said he was in talks with banks for a one-time settlement of debt that his now-defunct Kingfisher Airlines owes, adding that he had no plans to run away from his creditors.

Mallya's statement comes after a group of banks led by State Bank of India ask a court to arrest him, impound his passport and give them priority access to the USD75 million Mallya is due to receive from Diageo Plc. The tribunal is expected to give its verdict on the case on Monday.

Kingfisher, once India's second-biggest airline, stopped flying in 2012, leaving its creditors, suppliers and employees with unpaid dues and salaries. Exchange filings from 2014 show the airline owed more than USD1 billion to Indian banks, mostly state-run.

"I have been making efforts to reach a one-time settlement with the banks," Mallya said in a statement late on Sunday, which he said was aimed at refuting what he called a "hysterical campaign" against him in the media.

Mallya did not disclose how much debt was under discussion, but said the settlement would be based on additional payments to the banks, which he said has already recovered 24.94 billion rupees (USD371.98 million).

He said he had already held three meetings and follow up calls with the banks.

SBI Chairman Arundhati Bhattacharya did not immediately respond to a request seeking comment.

Last month, Mallya stepped down as Chairman of India's top spirits company United Spirits Ltd in a settlement with its new owners Britain's Diageo Plc and said he would spend more time in England, where his children live.

(USD1 = 67.0465 rupee)