Mallya gets help: Kolkata-based group mediates to strike one-time settlement over loan

Kolkata-based infrastructure financing conglomerate SREI’s heads Hemant Kanoria and Sunil Kanoria, are reportedly are trying to strike a deal with the banks that have lent money to Vijay Mallya's Kingfisher Airlines until 2014.

Kanorias are acting referee and trying to moderate a one-time settlement between UB chairman Vijay Mallya and the consortium of 17 banks to the defunct Kingfisher Airlines (KFA), sources directly familiar with the matter told Times of India.

TOI quoted a source saying,"The Kanorias are helping Mallya in their private capacity because the group is no longer in merchant banking activity. They have spoken to SBI and others as Mallya indicated that this time he is keen for a one-time settlement with lenders.”

The airlines had defaulted on the loan that is currently more than Rs 7,000 crore. State Bank of India having the highest exposure of Rs 1,600 crore.

The State Bank of India (SBI)-led consortium has been struggling to recover at least a part of the money by attaching assets. However, Mallya’s UB group petitioned the courts to stop the sale of pledged assets and shares by the lenders, which has slowed down the loan recovery process. 

An official close to Mallya told TOI that though the parleys were private and informal now, the Kanorias are trying to strike a deal.

"The Kanorias are in talks with some of the lenders and if they get a positive response, UB Group will look forward to engage with the lenders to settle the loans," the official said. 

This is an aggregated report from Times of India