Kingfisher Airline’s Mumbai office taken over by lenders

Kingfisher Airline’s Mumbai office taken over by lenders

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Kingfisher Airlines might be experiencing new problems. On August 10, 2013, lenders to Indian carrier took possession of Kingfisher House, which is the corporate office of the airline near domestic terminal of Mumbai airport. This recent move was taken by the lenders in order to recover Rs. 6,072, along with interest.

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Physical possession of the plot – measuring 25,850 sq ft – was taken by a SBI Caps trustee. The plot includes the office premises of more than 17,072 sq ft, located on the Western Express Highway. A notice was issued which announced this move and was pasted on the building’s doors. The notice was issued by SBI Caps on behalf of the lenders to KFA under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security interest Acts on May 3, 2013.

A bank official, who is also among the lenders to Kingfisher Air, said, “The Act says that if the borrower fails to repay within 60 days of the notice, lenders can take possession of assets and dispose of them”.

Meanwhile, banks have already recovered some money by selling shares and will also look towards other physical assets, which includes Kingfisher Villa in Goa. Apart from attaching property, lenders invoked corporate and personal guarantees provided by Vijay Mallya as part of their efforts.

Photo Credits: Reuters Media