Kingfisher to sell two properties to raise funds

Mumbai: Beleaguered Kingfisher Airlines on Thursday said it plans to sell two of its unused properties in Mumbai and Goa to partly repay staggering loans of about Rs 7,500 crore.

These properties are likely to fetch Rs 120 crore – Rs 90 for the Mumbai property and Rs 30 crore for the Goan villa – going by the current market value.

"The Kingfisher House 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," the airline spokesperson Prakash Mirpuri said.

At Thursday`s meeting of the consortium of 17 lenders and the airline`s management the pending proposal was discussed, he said.

Subsequently, the consortium appointed HDFC Securities to do a valuation of the two pledged properties. "We have asked HDFC Securities to do a valuation of the two properties — the Kingfisher House in Mumbai and a villa in Goa – which are already pledged with the lenders. We have asked them to revert in 15 days," a senior banker, who was present at the meeting this morning, told PTI.

The Vijay Mallya run carrier owes banks Rs 7,500 crore in arrears and additional interest since January when it stopped servicing their loans. The meeting, attended by most of the 17 lenders and airline`s chief executive Sanjay Aggarwal, was inconclusive.

The lenders decided to meet again over the next 2-3 weeks, the banker added. The meeting was held at the headquarters of the State Bank of India which is the leader of consortium.