Vijay Mallya and his advisers are working to revise a debt repayment offer that has been rejected by banks to make it more acceptable to them, people aware of the development said.
He's conducting a review of his assets in consultation with a legal firm that has financial expertise and may make an offer of staggered payments or a one-time settlement, they said.
He's also looking at paying the dues of Kingfisher Airlines employees. This has been prompted by a realization, according to the people cited above, that he needs to be personally accountable as a business leader about employee welfare.
Most employees were left high and dry when the airline promoted by Mallya stopped flying in 2012 even as he remained in the public eye for throwing lavish parties and owning stakes in cricket and Formula 1 teams. Mallya is keen to ensure that his name is redeemed in India.
"He has hated the term absconder and wants to show that he would have sat down with the banks so that he can revisit the country whenever he wishes peacefully rather than be compared to swindlers," said a person close to him.
There was no response to an email sent to Mallya on the subject. Bankers who are seeking more than Rs 9,000 crore in loans and interest from Kingfisher Airlines say a revised offer of some kind should be forthcoming.
"We are ready for the negotiation if he is willing to pay the entire principal amount that he owes banks," said the person cited above. "He should also tell us how much of the interest component he can repay, we can't waive that off. His settlement offer should include a significant portion of the interest component too as it has crossed over Rs 3,000 crore."
Bankers aren't too optimistic. "He had pledged his assets and given his personal guarantee, but he is not even willing to give his assets under oath; that matter is also pending at DRT (debt recovery tribunal)," said another banker on the condition of anonymity. "If he was willing to pay us back we wouldn't be fighting this matter in court." According to Mallya's statement, banks have already recovered Rs 1,244 crore from the sale of pledged shares.
An additional Rs 600 crore has been held as a deposit by the Karnataka High Court since July 2013 and a further sum of Rs 650 crore belonging to United Breweries Holdings has been similarly held since early 2014.