In the last few weeks, there have been several articles in leading news papers about Kingfisher debt sky rocketing out of control. The debt is estimated to have risen to 14,000 crores (ie. 140 Billion) INR. There is an article of management considering salary cuts.
Vijay Mallya is known for his flamboyance. He owns a F1 team, he travels in corporate jets. Recently he even bought Mahatma Gandhi's personal artifacts for 1.8 million USD. The problems with Kingfisher do not seem to have any effect on his spending habits.
How can such extravagant spending continue is a bad economy. Now, he is try to seel stake in UB spirits to get money. I feel a CEO should be held accountable for his actions. If Kingfisher goes bankrupt, I would easily point at antics of its CEO to maintain a public profile. This may be another Satyam in the making.. keep your eyes open.
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