VIJAY Mallya's UB Group plans to use some of the proceeds from the sale of a stake in United Spirits to trim the debts of troubled Kingfisher Airlines.
Diageo agreed to buy a controlling interest in United Spirits for around £1.3 billion last November, but the deal has still to complete. Kingfisher has a debt burden of around $1.6bn and has had staff walk-outs and grounded flights over non-payment of wages and bills.
It is believed Mr Mallya has come under pressure from Kingfisher's lenders to use cash from the Diageo deal to prop up the airline.
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