LENDERS SELL SHARES OF KINGFISHER

A consortium led by State Bank of India has recovered around Rs 550 crore by selling shares of troubled airline Kingfisher. Out of this, SBI got Rs 140 crore, the bank's mid-corporates head Shyamal Acharya also said. For the rest of the nearly Rs 6,000 crore unpaid debt, he said banks have personal guarantees of airline chairman Vijay Mallya. He, however, refused to divulge more details saying the matter is sub-judice. The consortium has taken possession of Kingfisher House, the corporate office of now defunct Kingfisher Airlines which owes about Rs 7,000 crore to the lenders. Last week a possession notice was pasted on gates of Kingfisher House in suburban Andheri. The property is valued at Rs 93 crore, as per estimates. It may be noted that Kingfisher Airlines also failed to pay service tax collected from passengers to tax authorities. The tax authorities are also a party to the assets of Kingfisher. A villa of the airline in Goa is also a part of security given to banks against loans. Following the November, 2010 debt recast, these two properties are already pledged with the lenders, along with personal guarantee of Kingfisher Chairman Vijay Mallya and other guarantees and pledges like the brand Kingfisher. SBI has the maximum exposure, over Rs 1,800 crore in the Vijay Mallya-led airline. It is followed by PNB (with Rs 800 crore, IDBI Bank at Rs 800 crore, Bank of India at Rs 650 crore and Bank of Baroda has Rs 550 crore. United Bank of India has Rs 430 crore, Central Bank of India (Rs 410 crore), Uco Bank (Rs 320 crore), Corporation Bank (Rs 310 crore), State Bank of Mysore, (Rs 150 crore), Indian Overseas Bank (Rs 140 crore), Federal Bank (Rs 90 crore), Punjab & Sind Bank (Rs 60 crore) and Axis Bank (Rs 50 crore).
Lenders outside the consortium are Srei Infrastructure Finance (Rs 430 crore), Jammu & Kashmir Bank (Rs 80 crore) and Oriental Bank of Commerce (Rs 50 crore). KFA has been grounded since October 1 last year after a labour unrest due to non-payment of salaries which have not been paid since last May.