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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 :

 

  1. The 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.

  2. The 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.

  3. Kingfisher 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.

  4. The 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.

  5.  State 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.

  6. Kingfisher 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.

Prakash Mirpuri
Vice President - Corporate Communications
Kingfisher Airlines Limited

 

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