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Indian Real Estate News : Goa
Goa villa, Mumbai office not up for sale: Kingsfisher Airlines
Source: PTI Jul 06, 2012
A day after lenders asked HDFC Securities to value two Kingfisher properties, the cash- starved airline today said the Goan property is not up for sale.
"The reported 'sale' of Kingfisher Villa and Kingfisher House are factually incorrect. Kingfisher Villa (in Goa) is owned by United Breweries Holdings and was offered as security to Axis Bank whose loan was incorporated into the lenders consortium," the airline said in an official statement this evening.
Yesterday after a meeting between 17-member banking consortium and the airline's management, bankers had said they have hired HDFC Securities to do a valuation of the two properties, in Mumbai and Goa, worth Rs 120 crore to recover a part of the RS 7,500 crore loans to the Vijya Mallya-led airline.
The Kingfisher statement further said, "United Breweries Holdings had voluntarily applied to the consortium in February for permission to replace the security value of Kingfisher Villa with equivalent cash."  In May, UB group's United Breweries Holdings had said Kingfisher Airlines has ceased to be its subsidiary but it had a significant exposure of over Rs 12,000 crore to the air carrier.
The airline had said yesterday that Kingfisher House has been lying vacant after the staff moved to its new offices at The Qube in Mumbai. "...and at that time itself, on our own accord, we approached the banks with a proposal to liquidate this unutilized asset," it added.
The company also said there was no talk about loan recovery in the the meeting with the bankers yesterday. "The meeting of the bank consortium was convened in the normal course with a properly circulated agenda. There was no discussion on loan recovery or forced sale of any collateral," it said.
On the number of aircraft it has, the airline said it has 44 aircrafts endorsed in its AoP and intends to operationalise its full fleet post recapitalization.
Last week, lessors had taken back as many as 34 aircraft as the airline was not able to pay their dues running into over Rs 1,000 crore, reducing its fleet strength to just about 18.
"Plans for recapitalization were shared with the banker as also the status of the company's discussions with prospective investors. No deadlines whatsoever were discussed or imposed yesterday," Kingfisher Airlines said today.
It further said the State Bank is the leader of the lenders' consortium and is the only bank that can issue statements, if any, on behalf of the consortium and the status of loans provided to Kingfisher. The airline also said it has not laid off staff because it believes that a ramp up of operations is possible post-recapitalization. "The airline continues to employ staff currently surplus to its "holding" operations," it said.
On salaries, the company admitted that there are delays in salary payment but this is being addressed seriously, and that salary disbursements have already commenced from yesterday and will continue on a regular basis.

Tag: Indian real estate, property in india, Kingfisher airlines, vijay Mallya
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