Lenders takes over KFA's Mumbai headquarter: Media Report

In a move to recover Rs 6,072 crore debts along with interest, lenders to Kingfisher Airlines have taken over the corporate office of Kingfisher Airlines (KFA) near Mumbai airport's domestic terminal.

SBI CAP Trustee Company Ltd, an arm of the State Bank of India and one of the major lenders to Kingfisher Airlines, took possession of 25,850-sq ft plot, which includes the office premises of over 17,072 sq ft, situated on the Western Express Highway, said media report.

According to a senior public sector executive, "The headquarters of the airline is tangible property which, when sold, could get part of our money back." However, most lenders have treated the Kingfisher Airlines account as a non-performing asset from the third quarter of FY12, added the media report.

The lenders also had to bear the burden of heavy provisioning, making a dent in bottom lines. The debt-laden airline has been grounded since October 2012.

Dion Global Solutions Ltd.

Read more about: kingfisher airlines
Story first published: Monday, August 12, 2013, 9:10 [IST]
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