Bank consortium to move to value, sell Kingfisher House

B L :MUMBAI, AUG 12:  2013

The 17-bank consortium that had funded Kingfisher Airlines has taken a possession of Kingfisher House, the Mumbai headquarters of the beleaguered carrier.

The move comes nearly three months after the consortium served a recovery notice under the SARFAESI law to the company.

The total exposure of the consortium to the airline was originally about Rs 7,000 crore.

Of this, Rs 600-700 crore has been realised by selling the shares pledged with the consortium.

Besides their personal guarantee, the promoters had also pledged the shares of UB Holdings.

With Kingfisher House in their possession, the lenders’ next step will be to serve a sale notice to the owner, it is learnt.

SBI Caps has been tasked to value the property and find a buyer.

In an earlier round of valuation, Rs 90 crore was the number thrown up.