Millennium Post

Kingfisher's woes jeopardise its properties

Lenders to debt-ridden Kingfisher Airlines on Thursday hinted at selling the carrier’s two properties in Mumbai and Goa worth Rs 120 crore to recover a part of the loan worth over Rs 7,500 crore.

According to banking sources, the consortium of 17 bankers have appointed HDFC Securities to do a valuation of these two properties.

Kingfisher, which has been an NPA since January, denied recovery proceedings by its lenders, saying it had already proposed sale of these properties - the Kingfisher House in the city and a villa in Goa - to bankers a few months ago.

According to bankers, while the Kingfisher House in suburban Andheri has a market value of Rs 90 crore, a villa in Goa is valued at around Rs 30 crore.

The decision to monetise two of the airline’s properties follows a meeting between lenders and the company here on Thursday which did not make any headway.

‘The Kingfisher House in Mumbai has been lying vacant after the staff moved to our new offices at The Qube in Mumbai, and at that time itself, on our own accord, we approached the banks with a proposal to liquidate this unutilised asset and at Thursday’s meeting we raised the issue of this pending approval,’ the airline spokesperson said in a statement.

The airline claimed that the meeting was a pre-scheduled one to update the lenders and that ‘there was no discussion on commencement of recovery proceedings’.

Along with the personal guarantee from Kingfisher chairman Vijay Mallya and other guarantees and pledges like the brand Kingfisher, these two properties are already pledged with the lenders following the November 2010 debt recast.
Next Story
Share it