Lenders eye buyers for Kingfisher House

Mumbai : In a move to recover dues from defunct Kingfisher Airlines’ promoter Vijay Mallya, State Bank of India (SBI) and other lenders have sought fresh bids for the sale of Kingfisher House, the Mumbai corporate office of the airline, IDBI Bank said in a notice on its website.

The auction will be held on March 27 between 1000 IST and 1200 IST, through electronic bidding and the reserve price for the property has been set at Rs 75 crore. Kingfisher Airlines owed banks Rs 6,203 crore as on June 25, 2013, including annual interest of 11.50 per cent, the notice said. In May, SBICAP Trustee had invited bids for the same properties with a reserve price of Rs 93.50 crore.

On Feb 24, 2015, SBICAP Trustee, a wholly-owned subsidiary of SBICAPITAL Markets, took possession of the corporate office under Section 13(4) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. Kingfisher Airlines was grounded in 2012.

The property is among the assets pledged by Kingfisher Airlines to a consortium of 17 banks led by State Bank of India. SBICAP Trustee has on three earlier occasions failed to sell Kingfisher House. The company conducted auctions in March, August, and November 2016.

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Free Press Journal