Mallya gives R5,904 crore guarantee to KFA lenders

Mallya had got a commission of Rs 51 crore for these guarantees in 2010-11,but the airline has said that such payment have been withdrawn after directions from the consortium of its lenders

Written by Press Trust Of India | New Delhi | Published: September 5, 2012 12:54 am

Kingfisher Airlines Chairman Vijay Mallya gave guarantees worth Rs 5,904 crore for the carrier’s loans and other liabilities in 2011-12 but did not get any commission for the same because of lenders’ opposition.

While guarantees given by Mallya fell from Rs 6,156 crore in the previous year 2010-11,the guarantees provided by Kingfisher’s holding and associate companies rose from Rs 8,863 crore to Rs 8,926 crore in this period.

Mallya had got a commission of Rs 51 crore for these guarantees in 2010-11,but the airline has said that such payment have been withdrawn after directions from the consortium of its lenders.

As per the company’s latest annual report 2011-12,sent to shareholders ahead of their Annual General Meeting to be held on September 26,the airline did not make any payments to Mallya during the fiscal.

Kingfisher’s net loss more than doubled to Rs 2,328 crore in 2011-12,from Rs 1,027 crore in the previous year. Its total long-term borrowings stood at Rs 5,695 crore as on March 31,2012,down from Rs 6,306 crore a year ago. Besides,it had short-term borrowings of Rs 2,335 crore at the end of 2011-12,up from Rs 604 crore as on March 31,2011.

Gold hits new high at Rs 31,850

Gold on Tuesday broke all previous records to touch a fresh all-time high of Rs 31,850 per 10 grams,buoyed by brisk buying by stockists in tandem with strong global cues.

The precious metal,which has been on an upward swing since last two weeks,shot up by Rs 240 in the national capital region,surpassing its previous record of Rs 31,725 on September 1.

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