Kingfisher lenders get going on sale of assets
Lenders to grounded Kingfisher Airlines are likely to move the debt recovery tribunal (DRT) on selling assets belonging to the airline.india Updated: May 29, 2013 01:55 IST
Lenders to grounded Kingfisher Airlines are likely to move the debt recovery tribunal (DRT) on selling assets belonging to the airline.
The State Bank of India (SBI)-led consortium of 14 lenders has collected around Rs 800-1,000 crore by selling pledged shares of the associate companies of Kingfisher Airlines parent UB Group.
Lenders hold close to 2.6 million shares of UB group companies — United Spirits (USL), Mangalore Chemicals and Fertilisers Ltd (MCF) and Kingfisher Airlines (KFA). The consortium of 14 banks has a combined exposure of Rs 7,000 crore to the Vijay Mallya-led carrier, which hasn’t paid its staff salaries since July, 2012.
“We cannot comment on matters that are sub judice,” said a Kingfisher spokesperson.SBI has the maximum exposure at R1,600 crore to Kingfisher, followed by Punjab National Bank (Rs 800 crore), UCO Bank (Rs 320 crore), Corporation Bank (Rs 310 crore), State Bank of Mysore (Rs 150 crore), Indian Overseas Bank (Rs 140 crore), Federal Bank (Rs 90 crore), Punjab and Sind Bank (Rs 60 crore), IDBI Bank (Rs 800 crore); Bank of India (Rs 650 crore), Bank of Baroda (Rs 550 crore), United Bank of India (Rs 430 crore), Central Bank of India (Rs 410 crore) and Axis Bank (Rs 50 crore).
Other lenders outside the consortium include Srei Infrastructure Finance (Rs 430 crore), Jammu and Kashmir Bank (Rs 80 crore) and Oriental Bank of Commerce (R50 crore).
Banks, sources said, have plans to sell Kingfisher House in Vile Parle and a villa in Goa owned by Mallya.