Not liable to repay Rs 6,000 crore debt due to breach of terms: Kingfisher Airlines

• Posted in Aviation
• on July 27, 2016
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The Kingfisher Airlines Limited, a holding company of Vijay Mallya, said it is not liable to repay over Rs 6,000 crore debt to the consortium of banks as the lenders have breached terms and conditions of Master Debt Restructuring Agreement between both parties, which caused needless damages to the firm’s business.

Resuming the hearing on the Original Application filed by bankers, seeking recovery of over Rs 6,000 crore from Mallya and his companies, KFA Counsel pleaded that the Debt Recovery Tribunal should reject the plea as the lenders have breached MDRA terms and conditions.

Making submissions before DRT Presiding Officer C R Benakanahalli, KFA Counsel submitted that since section 54 of MDRA was breached by lenders, the company is not liable to pay the loans for damages caused by them.

According to MDRA terms and conditions, KFA was to get the working capital fund from the lenders to continue their airline business, which the lenders violated and eventually the company faced further financial problems.
“The lenders breached the agreement by not providing working capital fund to KFA, and due to which the company faced financial difficulties. Rafael Bush Womens Jersey

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