We know everything about bankruptcy
24/11/2024
Sunday
24 November 
1970 The United States and the USSR ratified the nuclear non-proliferation treaty.
1970 The Central Committee of CPSU restored the national autonomy of the Kalmyks, Karachais, Balkars, Chechens and Ingush.
1970 Charles Darwin published The Origin of Species - the first edition was sold out in a day.
INDIAN BILLIONAIRES CONTINUE TO GO BANKRUPT
Rusbankrot already published a material about his financial problems at the end of April. After Vijay Mallya had been declared insolvent in a British court, social media in India began to literally seethe with discussions about the spectacular collapse of the 65-year-old entrepreneur, whose vibrant lifestyle was gaining attention.
Mallya has succeeded thanks to the United Breweries Group holding company, which owns the popular Kingfisher beer brand.
In 2005, the tycoon opened Kingfisher Airlines, which, however, was forced to close down in 2012 due to skyrocketing fuel prices and growing debt. 3,000 employees have been laid off, and wage arrears of $ 67 million are still outstanding. Mallya himself, who fled to the UK in 2016 with $ 1.5 billion in debt to banks, is accused of fraud and money laundering in India. Indian officials say they will seek his extradition, but Mallya is likely to seek political asylum.
As noted by the Indian lawyers, the reason for such a loud collapse of financial empires is the attempt by business to maintain the appearance of success, despite the existing economic problems.
Instead of filing for bankruptcy straight away, many seek to maintain a beautiful facade of their business in the public eye. As a result, fatal mistakes, leading to dire consequences, are made.
Among the Indian tycoons that have gone bankrupt in recent years is Anil Ambani, who was named by Forbes the fourth largest capitalization in India in 2010. A 62-year-old businessman, a brother of Asia's richest man, Mukesh Ambani, was declared bankrupt in 2019 for non-payment of loans to three Chinese banks and the state bank of India. Only thanks to the intervention of his brother, who paid off his $ 77 million debts, the businessman escaped imprisonment.
Another famous example of ‘high-profile’ bankruptcy is Pramod Mittal, the younger brother of the British steel tycoon Lakshmi Mittal. In 2020, the High Court of London declared him insolvent with a debt of $ 3.5 billion.
The reason for the bankruptcy was the surety, issued by him on a loan for his company, which amounted to $ 166 million in 2013.
Naresh Goyal, 72, who owned Jet Airways India and left his post of chairman of the board of directors in March 2020, also went bankrupt. He filed for bankruptcy after the court demanded $ 2.5 billion from him.
The most illustrative case of bankruptcy discussed by Indians on social media is the case of 69-year-old Venugopal Dhut. He was the first to build a Videocon Industries consumer durables business in India. However, the diversification of business in various areas (such as telecommunications, mineral exploration and electronics) led to the collapse. In 2018, the company was sued after the owner defaulted on payments to the bank of India for $ 7 billion.
