Auction for Kingfisher Airlines brands fails as no bidder turns up
An auction of various brands and trademarks of the long-grounded Kingfisher Airlines, including its once-famous tagline ‘Fly The Goodtimes’, failed on Saturday. Lenders are trying to recover their dues from liquor tycoon Vijay Mallya.business Updated: Apr 30, 2016 13:38 IST
An auction of various brands and trademarks of the long-grounded Kingfisher Airlines, including its once-famous tagline ‘Fly The Goodtimes’, failed on Saturday. Lenders are trying to recover their dues from liquor tycoon Vijay Mallya.
The reserve price for the trademark was kept at Rs 366.70 crore, not even one-tenth of the price at which it was pledged with as a collateral for the loan.
Mallya, who flew to London on March 2 as a group of state-owned banks knocked on the door of the Supreme Court to recover about Rs 9,000 crore owed by his collapsed Kingfisher Airlines Ltd, has said he is not guilty of charges of diverting funds from Kingfisher for buying properties.
Besides the logo, the 17 lenders led by SBI put on sale other trademarks of the now-defunct airline such as the once-famous ‘Fly the Good Times’ tagline, Flying Models, Funliner, Fly Kingfisher and Flying Bird Device.
The brand Kingfisher was collateralised to banks for Rs 4,000 crore (by Grant Thornton) in 2010, now down to a trickle.
The online auction of brand Kingfisher was being conducted by SBI Cap Trustee Company on behalf of lenders under the SARFAESI Act.
Mallya had pledged the trademarks as collateral with banks at the time of taking loans from them.
At its peak, the Kingfisher Airlines was the largest airline in the country, with a five-star rating from Skytrax, according to the airline’s annual report for 2012-13.
Last month, the consortium of banks had failed in its attempt to sell the airline’s erstwhile headquarter Kingfisher House here.
The auction failed as none of the bidders came forward due to high reserve price of Rs 150 crore. The property has a built-up area of over 17,000 sq-ft in Vile Parle near the domestic airport.
First Published: Apr 30, 2016 13:32 IST