INDIA: Potential spanner in works for Diageo as UB Group hit by US$90m guarantee demand
Vijay Mallya must scrape together INR5bn to prevent the sale of pledged shares in United Spirits
The head of The UB Group has been told he must provide a personal guarantee of INR5bn (US$91.9m) to obtain a four-week protection period against lenders hoping to sell a portion of pledged shares in the United Spirits (USL) division.
Vijay Mallya, the chairman of The UB Group, was hit by the demand by the Bombay High Court earlier today (2 April). A consortium of lenders, comprising 17 banks led by the State Bank of India (SBI), is seeking to retrieve money lent to the group for its struggling Kingfisher airline.
The consortium was given pledged shares in United Spirits in return for the loans.
Mallya had previously filed a petition through UB Holdings seeking to prevent the sale of these shares, after the SBI last week sold a portion of them in the open market amounting to INR1bn.
No one was available from UB Group spokesperson to comment on how the company will respond to the court’s condition.
- Are we kidding ourselves over craft spirits?
- What's behind Brown-Forman's Irish whiskey plans?
- Is Brown-Forman doing a Jack Daniel's in Ireland?
- How good a sustainability fit are ABI and SAB?
- Interview - Heineken global activation director
- Diageo, Treasury Wine Estates quiet on wine sale
- Chandon to become "third pillar brand" for MH
- Brown-Forman silent on Southern Comfort report
- Pay freeze anger threatens Carlsberg UK site
- Stoli appoints international marketing director
- The IWSR Duty Free/Travel Retail Report 2015
- Future growth opportunities for global spirits
- Global gin insights - market data, product innovation and consumer trends research
- Global Scotch whisky insights - market forecasts, product innovation and consumer trends research