Mumbai: Grounded carrier Kingfisher Airlines, founded by flamboyant liquor baron Vijay Mallya, said on Tuesday it had handed over possession of a property to a group of lenders to which it owes about $1.5 billion.
Kingfisher, once India's second-biggest airline, stopped flying more than two years ago for want of cash, leaving its creditors, mostly state-run banks, and suppliers with pending dues.
The lenders had been trying to take possession of Kingfisher House in Mumbai for nearly two years, but the takeover had been delayed by legal issues. A Mumbai court this month ordered Kingfisher to hand over the property to a group of bankers.
Kingfisher House, once the airline's headquarters, is estimated to be worth about $15 million, a fraction of what the lenders are owed.
Indian stock exchanges in November suspended trading shares of the airline after it failed to comply with rules on reporting financial results. The government in December rejected the re-appointment of Mallya as managing director of Kingfisher.
25/02/15 First Post
Kingfisher, once India's second-biggest airline, stopped flying more than two years ago for want of cash, leaving its creditors, mostly state-run banks, and suppliers with pending dues.
The lenders had been trying to take possession of Kingfisher House in Mumbai for nearly two years, but the takeover had been delayed by legal issues. A Mumbai court this month ordered Kingfisher to hand over the property to a group of bankers.
Kingfisher House, once the airline's headquarters, is estimated to be worth about $15 million, a fraction of what the lenders are owed.
Indian stock exchanges in November suspended trading shares of the airline after it failed to comply with rules on reporting financial results. The government in December rejected the re-appointment of Mallya as managing director of Kingfisher.
25/02/15 First Post
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