Recovery is last option: Lenders
By ENS Economic Bureau - BANGALORE
22nd October 2012 10:14 AM
Aiming for least collateral damage to both lenders and debt ridden airline, Kingfisher Airlines (KfA), banks have stated that all out recovery would be their ‘last option’.
On Sunday, it was reported that the 17 banks, which have a combined exposure of over Rs 7,500 crore to Kingfisher Airlines, are still hopeful that the company’s promoters would be able to wriggle out of their current crisis by finding new investors and fresh funds.
Lenders had on Saturday stated that they would be able to recover only 10-15% if they were to pledge all attached properties and were hence willing to wait a little longer for better recovery options.
Bankers are reportedly to have stated that shut down would incur maximum damage to all stakeholders.
Airline regulator, Director General of Civil Aviation (DGCA) had suspended KfA flying licence, sending unpaid banks and employees into a tizzy.
On Saturday, after the DGCA’s order, KfA in a statement said, “we would like to clarify that this is not a cancellation but a temporary suspension which is valid only till such time that we submit a concrete and reliable revival plan to the satisfaction of DGCA”.
In July this year, Kinfisher issued a statement dismissing reports that bankers had decided to initiate recovery proceedings of two of their properties; Kingfisher house in Andheri (Rs 90 crore) and KF villa in Goa (Rs 30 crore) and had also appointed HDFC securities to value the same.
But during Kingfisher Airlines Annual General Meeting (AGM), liquor baron and Kingfisher Chairman Vijay Mallya claimed that he had infused Rs 1154 crore since April 2012 to save the airline.
Further, in a filing to the Bombay Stock Exchange on August 27 (audited financial report for March 31,2012), United Breweries Holdings (UBHL) had stated that the company had attached Mallya’s ancestral property and declared that they had borrowed Rs 525 crore against this property development and the sale proceeds of completed units would be part utilised to repay such loan.
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