Liquor baron Vijay Mallya received a major blow from the Karnataka High Court yesterday when it ordered winding up of the United Breweries Holdings Limited (UBHL), the holding company of UB Group for recovery of defunct Kingfisher Airlines losses owed to consortium of bank led by State Bank of India.
Liquor baron Vijay Mallya suffered a major blow when the Karnataka High Court yesterday ordered winding up of the United Breweries Holdings Limited (UBHL).
The winding-up was ordered to facilitate recovery of debt owed by defunct Kingfisher Airlines to a consortium of bank led by State Bank of India.
UBHL is the holding company of the UB Group.
Kingfisher was promoted by UB and the court ordered that the parent company, being a guarantor to Kingfisher's loans, had to be held responsible for recovery of debt.
Currently, Vijay Mallya’s stake in UBHL stands at 52.34 percent.
Below is the chronology of events that led to the winding up of UBHL.
May 2005: Vijay Mallya sets up Kingfisher Airlines to cater to the premium segment.
June 2007: Kingfisher Airlines decides to purchase debt-ridden Air Deccan.
2008: UBHL paid Rs 550 crore for a 26 percent stake in Air Deccan.
March 2008: Kingfisher Airlines debt touches Rs 934 crore due to spike in oil prices.
2009: Airline debt reaches Rs 7,000 crore.
2011: Airline accumulated losses reach more than 50 percent of its net worth.
2011: 11 bank accounts were suspended by service tax department for non-payment of Rs 70 crore.
2012: Mallya gives guarantees of Rs 5,904 crore for carrier’s loan.
February 2013: UBHL seeks shareholders’ approval for Rs 450 crore for Kingfisher Airlines.
March 2013: Kingfisher Airlines net worth falls to negative of Rs 13,000 crore.
December 2014: United India Bank recognises UBHL, guarantor of Kingfisher Airlines as wilful defaulter.
February 2015: SBI led bank consortium takes possession of Kingfisher House in Vile Parle.
April 2015: United Spirits Limited (USL) asked Vijay Mallya to step down as chairman and director of fund on alleged fund diversion.
October 2015: CBI conducts raids on Vijay Mallya’s offices in connection with Rs 950 crore loan provided by IDBI Bank.
December 2015: CBI questions Vijay Mallya in Rs 900 crore IDBI Bank’s loan.
February 2016: SBI led consortium moved debt recovery tribunal (DRT) to attach Vijay Mallya’s passport.
March 2016: Vijay Mallya in discussion with banks to settle debt.
March 2016: On March 9, Mallya leaves India.
March 2016: Mallya offers to pay Rs 4,000 crore by September to banks.
April 2016: Banks rejected Mallya’s offers for payment of dues worth Rs 9,000 crore.
April 2016: Hyderabad court convicts Vijay Mallya in case filed by GMR Hyderabad International Airport for bounced cheque.
April 2016: Ministry of External Affairs revokes Vijay Mallya’s passport.
April 2016: Enforcement Directorate approach special court to issue non-bailable arrest warrant against Mallya.April 2017: Mallya arrested in London on India's request for extradition.