Mortgage firm HDFC to re-value two properties of Kingfisher

05 Jul 2012

The lenders of Kingfisher Airlines today appointed mortgage firm HDFC to re-value two of the airline's properties. The properties may be up for sale if the consortium of lenders decides to go for recovering a part of their loans.

A villa in Goa and Kingfisher House in Vile Parle, Mumbai, are the properties that are likely be re-valued. The airline, however, denied in a statement that banks had initiated any recovery proceedings.

"The meeting was scheduled as an update meeting and there was no discussion on commencement of recovery proceedings," the statement read.

"Kingfisher House (in Mumbai) has been lying vacant after the staff moved to our 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 unutilised asset and at today's meeting we raised the issue of this pending approval," the statement added.

The airline's liabilities include a sum of Rs280 crore to the Airports Authority of India and Rs296.06 crore to Income Tax. 

Kingfisher, India's No 2 airline a year back by domestic market share, has been the hardest hit among carriers by the turbulence in an aviation industry, where the six main carriers face a total debt load of $20 billion and $2 billion in annual losses.