Wednesday, June 26, 2013

Kingfisher Airlines asset sale: Bankers have mountain to climb

It may be a few more months before bankers get to sell off properties pledged to them by Kingfisher Airlines (KFA), even as the 60-day notice period under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (Sarfaesi) Act draws to an end.
Banks had served a Sarfaesi notice to the beleaguered airliner in the first week of May, to take control the immovable properties pledged with them. The notice period is likely to end on July 3, according to TV reports. The pledged items include real estate properties in Mumbai and Goa.
"Once the 60-day notice period is over, banks can place a seal notice on these properties and, then, they can choose to approach the district magistrate for physical possession of the property," said a banker close to the development.
Once the district magistrate gives its approval, bankers can put out advertisements in national publications inviting bids for sale of these properties, within a 30-day period.
25/06/13 Viswanathan Nair/Financial Express