Mallya owned Kingfisher Airlines to appeal winding up order
3 February, 2014
Grounded carrier Kingfisher Airlines Ltd, controlled by Force India F1 Team Owner Vijay Mallya, announced on Monday that it will appeal against a court order accepting a winding-up petition by a UK based creditor.
Kingfisher, which has not flown in more than a year for want of cash, said it would appeal against the Karnataka High Court’s order admitting the petition by Aerotron Limited. Kingfisher said that Aerotron was an unsecured creditor.
Kingfisher owes more than $1 billion to Indian state-run lenders, and hundreds of millions of dollars to airports and the Indian tax office among others.
India does not have a formal bankruptcy process. Liquidation pleas could take years before a final verdict.
Kingfisher has declared several times in the past that it is trying to arrange funds and revive operations, but has had little success so far. (GP247)
Subbed by AJN.