Serving a legal notice to the debt-driven Kingfisher Airlines, banks have said that they will go ahead with a plan to attach their realty assets, if the carrier again fails to repay the amount with interest.
Banks that had earlier loaned Kingfisher Airlines have served the carrier a legal notice which stated that they will attach the realty assets of the carrier. The airlines had submitted their realty assets as collateral to these loans.
As the lenders have not received the loans back, they have decided to send legal notice to Kingfisher Airlines.
Among the lenders, State Bank of India is the largest. SBI had lent huge amounts of money. The loans are still to be repaid.
Commenting on their plans to attach the realty assets of debt driven carrier, SBI’s Deputy MD Shyamal Acharya said that the bank has already sent the notice to the carrier.
Kingfisher Airlines Ltd is owned by Vijay Mallya. His properties also are expected to be attached. Besides this, the carrier’s parent company UB Group also may face attachment other than the other subsidiary firms of Kingfisher.
While speaking to the media persons, a senior bank executive confirmed the plan. He affirmed that the banks are moving ahead with their attachment plans.
Kingfisher Airlines’ realty assets include its office in Mumbai and a posh villa. The villa is in Goa. Besides these, some properties of UB Group and its chairman Vijay Mallya also are likely to be attached.
Indian Government had cancelled its license last year. After losing the license, it grounded in October 2012. The debt of the firm amounts to over $2.5 billion.
Besides the lenders and banks, the carrier has to pay huge amounts to its employees as well as to the Indian Government. The banks, with the permission of HC, had sold the shares of UB Group for recovering their funds.
