Media Statement issued by Kingfisher Airlines : Mumbai, July 6, 2012
Mumbai, July 6, 2012---This has reference to various media
reports and queries. We would like to clarify as follows :
meeting of the consortium of banks was convened in the normal course with a
properly circulated agenda. There was no discussion on loan recovery or forced
sale of any collateral.
much publicised "sale" of Kingfisher Villa and Kingfisher House are factually
incorrect. Kingfisher Villa is owned by United Breweries Holdings and was
offered as security to Axis Bank whose loan was incorporated into the lenders
consortium. United Breweries Holdings has voluntarily applied to the consortium
in February for permission to replace the security value of Kingfisher Villa
with equivalent cash. As far as Kingfisher House is concerned, this property is
now vacant following the move to The Qube. This property is intended for sale
and, once again, the consortium was voluntarily approached for permission to
sell with the proceeds being paid to the banks.
Airlines has 44 aircraft endorsed in its AOP and intends to operationalise its
full fleet post recapitalisation. Plans for recapitalisation were shared with
the Bank consortium as also the status of the Company's discussions with
prospective investors. No deadlines whatsoever were discussed or imposed.
takeover of the ICICI loan at full value without any discount is testimony to
the fact that India Global Competitive fund acknowledges the future viability
of the Airline and considers the loan to be recoverable.
Bank of India is the leader of the Bankers Consortium and is the only Bank that
can issue statements, if any, on behalf of the consortium and the status of
loans provided to Kingfisher Airlines.
Airlines has not laid off staff because it believes that a ramp up of
operations is possible post recapitalisation. The Airline continues to employ
staff currently surplus to its "holding" operations. There are
admitted delays in payment of salaries but this issue is being addressed with
the seriousness and compassion that it deserves. Disbursements of salaries have
commenced and will continue on a regular basis.
Vice President - Corporate
Kingfisher Airlines Limited