F1 » Mallya’s Kingfisher on verge of collapse


One of Force India boss Vijay Mallya's business interests is in serious trouble, but sources insist team is safe.

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Cloudy weather ahead - Unregistered

February 14, 2013 5:13 PM

In the normal world, an average person when they owe large amounts of money to banks and major creditors, would be expected to and have to sell there own assets including there home to satisfy any outstanding bills, unless it puts them out on the street maybe......why the hell should this man be any different? I cant see Force India surviving in its present guise much longer. Maybe Max Chiltons dad can help out here...??

Mark _

February 14, 2013 5:43 PM

@Cloudy weather ahead - These are not personal debts they are debts of one of his companies. The whole idea behind a corporation is to protect personal assets from a business failure. I am not sure what the rules are in the UK or EU but here in the US even a small business owner can form a coporation to seperate their assets from the business.

richard

February 14, 2013 7:21 PM

mark. maybe in the us,but mallya has given personal guarantees and collateral for his astronomical loans. some of his personal assets have already been seized, and he has even had to partially sell off his whisky company, to stay afloat. banks will take eery step possible to recover their money

JACKBEE

February 15, 2013 12:47 AM

This was on the cards nearly a year ago, you can't not pay Pilots for 6 months, suppliers, fuel companies etc. and expect to get away with it.
But, as they say "Owe the Bank $100 you are in trouble, owe the Bank $1.6BILLION and...................."

mkindy - Unregistered

February 15, 2013 3:32 AM

... and Sahara are having some bank accounts frozen for not repaying 52bn...

Surprised at FT though... the reason to have separate business entities is to protect them in case one get's into problems.. morality of not bailing the airline out with his personal money?? tabloid journalism at it's worst..

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