A $234m lawsuit that may help Mallya repay airline's debt

The suspense surrounding India’s battle with bad loans and defaulters is getting deeper. A litigation over the quality of a jet engine may determine how much lenders can claw back from Vijay Mallya, the besieged founder of the failed Kingfisher Airlines. The catch: The nation’s famously snail-paced, gridlocked judiciary where some cases have dragged on for almost two decades. Banks need to agree to the plan and will respond on Thursday. The indebted ex-billionaire, who has sparred with local media for portraying him as the poster boy for soured loans, owes about $1.4b, according to the government. Last week he offered to settle his dues with a 40b-rupee ($600m) payment by the end of September. He also promised 20b rupees more if United Breweries, the parent of Kingfisher, wins a lawsuit alleging defective engines from International Aero Engines contributed to his carrier’s collapse. The Supreme Court on Thursday will hear bankers’ views on whether they are willing to accept Mallya’s offer. <br/>