Deutsche Bank lends $300m to Wadia Group's Leila Lands
ECONOMY & POLICY

Deutsche Bank lends $300m to Wadia Group's Leila Lands

A Wadia Group company based in Mauritius obtained loans amounting to $300 million from Deutsche Bank during the 2021 and 2022 financial years by creating a charge on the bank account of the London-based parent company of Britannia Industries. Additionally, the company created fixed deposits of $190 million, which were used to secure financing for Go First from the German lender.

The information was obtained from security filings in the UK, India, and Mauritius, which were made by Leila Lands Limited (LLL), the Wadia Group company based in Mauritius, and Associated Biscuits International Limited (ABIL), the London-based company that owns a 44.76% stake in the listed Britannia Industries.

Leila Lands clarified that the loan from Deutsche Bank had no connection to the group's shareholding in Britannia Industries. It further explained that the fixed deposits were created from its accumulated retained cash earnings.

The spokesperson for Leila Lands mentioned that the LLL Group had made significant equity investments in Go Air (India) [GoAir] as promoters over the years. LLL provided security to Deutsche Bank by way of a fixed deposit of $191 million, which was out of its own accumulated retained cash earnings, to advance financial assistance to GoAir.

According to the filings, Leila Lands took on the loans from Deutsche Bank during the 2021 and 2022 financial years.

Deutsche Bank's total exposure to Wadia Group is difficult to estimate because finance facilities have been provided to more than one group company and in different jurisdictions.

The major lenders to a company determine the dynamics of an insolvency proceeding. Deutsche Bank's exposure could influence its say in the insolvency proceedings once a committee of creditors is formed.

Go First received a financial facility of Rs 1,320 crore from Deutsche Bank India. The airline denied any knowledge of the fixed deposits created by Leila Lands but acknowledged that it received financial assistance from Deutsche Bank.

Three other Indian public sector banks, namely Central Bank of India, Bank of Baroda, and IDBI Bank, are collectively owed around Rs 3,400 crore by the airline.

The National Company Law Tribunal admitted Go First for insolvency after the company voluntarily approached the adjudicating authority with a plea that it is unable to meet its financial obligations to creditors. Go First had defaulted on payments of Rs 2,600 crore to aircraft lessors and payments of Rs 1,200 crore to vendors. The airline filed for insolvency because several of its aircraft remained grounded due to defective engines supplied by Pratt and Whitney. The airline is in litigation with the engine manufacturer in the US.

Aircraft lessors led by SMBC Capital are opposing Go First's admission into insolvency proceedings as this would result in a moratorium on all assets of the company, including aircraft, and prevent the lessors from repossessing planes.

Also Read
Central advisory council: real estate stalled project issue
Indore civic body identifies housing projects delayed

A Wadia Group company based in Mauritius obtained loans amounting to $300 million from Deutsche Bank during the 2021 and 2022 financial years by creating a charge on the bank account of the London-based parent company of Britannia Industries. Additionally, the company created fixed deposits of $190 million, which were used to secure financing for Go First from the German lender. The information was obtained from security filings in the UK, India, and Mauritius, which were made by Leila Lands Limited (LLL), the Wadia Group company based in Mauritius, and Associated Biscuits International Limited (ABIL), the London-based company that owns a 44.76% stake in the listed Britannia Industries. Leila Lands clarified that the loan from Deutsche Bank had no connection to the group's shareholding in Britannia Industries. It further explained that the fixed deposits were created from its accumulated retained cash earnings. The spokesperson for Leila Lands mentioned that the LLL Group had made significant equity investments in Go Air (India) [GoAir] as promoters over the years. LLL provided security to Deutsche Bank by way of a fixed deposit of $191 million, which was out of its own accumulated retained cash earnings, to advance financial assistance to GoAir. According to the filings, Leila Lands took on the loans from Deutsche Bank during the 2021 and 2022 financial years. Deutsche Bank's total exposure to Wadia Group is difficult to estimate because finance facilities have been provided to more than one group company and in different jurisdictions. The major lenders to a company determine the dynamics of an insolvency proceeding. Deutsche Bank's exposure could influence its say in the insolvency proceedings once a committee of creditors is formed. Go First received a financial facility of Rs 1,320 crore from Deutsche Bank India. The airline denied any knowledge of the fixed deposits created by Leila Lands but acknowledged that it received financial assistance from Deutsche Bank. Three other Indian public sector banks, namely Central Bank of India, Bank of Baroda, and IDBI Bank, are collectively owed around Rs 3,400 crore by the airline. The National Company Law Tribunal admitted Go First for insolvency after the company voluntarily approached the adjudicating authority with a plea that it is unable to meet its financial obligations to creditors. Go First had defaulted on payments of Rs 2,600 crore to aircraft lessors and payments of Rs 1,200 crore to vendors. The airline filed for insolvency because several of its aircraft remained grounded due to defective engines supplied by Pratt and Whitney. The airline is in litigation with the engine manufacturer in the US. Aircraft lessors led by SMBC Capital are opposing Go First's admission into insolvency proceedings as this would result in a moratorium on all assets of the company, including aircraft, and prevent the lessors from repossessing planes. Also Read Central advisory council: real estate stalled project issue Indore civic body identifies housing projects delayed

Next Story
Building Material

Ambuja Cements Drags JSW Cement to Court Over ‘Kawach’ Brand

Ambuja Cements, part of the Adani Group, has filed a trademark infringement case against JSW Cement in the Delhi High Court, alleging that its rival copied the ‘Kawach’ brand with its new product ‘Jal Kavach’.Justice Manmeet Pritam Singh Arora issued summons to JSW Cement and its subsidiary, JSW IP Holdings Pvt Ltd, while referring the matter to mediation. Hearings are scheduled to resume on October 15 if no settlement is reached.Ambuja, which registered the ‘Kawach’ trademark in 2019, argues that the term ‘Kavach’—meaning shield—is the distinctive feature of its branding. ..

Next Story
Technology

Bentley Systems Named Innovation Partner of the Year 2025 by Afcons

Bentley Systems, the infrastructure engineering software company, has been recognised by Afcons Infrastructure Limited as its Innovation Partner of the Year 2025 at the Innovation Partners 2025 Felicitation Ceremony in Mumbai. The award acknowledges Bentley’s contribution to Afcons’ engineering digitalisation journey through an enterprise agreement providing access to over 250 Bentley engineering software tools. This adoption has enabled Afcons to accelerate project delivery, standardise digital workflows, and strengthen innovation across its infrastructure portfolio. Among key i..

Next Story
Infrastructure Urban

SBI Sells 13.18% Stake in Yes Bank to Japan’s SMBC

State Bank of India (SBI) has completed the sale of a 13.18 per cent stake in Yes Bank to Japan’s Sumitomo Mitsui Banking Corporation (SMBC) for over Rs 8,889 crore. The divestment is part of a Rs 13,482 crore deal finalised in May with SMBC and seven private banks.Following the transaction, SBI’s shareholding in Yes Bank stands at 10.8 per cent. The deal, involving 4,134.4 million shares at Rs 21.50 each, is the largest cross-border transaction in the Indian banking sector.SBI Chairman C S Setty described the 2020 RBI-led rescue of Yes Bank as a pioneering public-private partnership, addi..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?