All the movable assets of Kingfisher Airlines which are located at Mumbai’s international airport will be auctioned today. The auction will take place online by SBICap Trustee Company. The activity is aimed at partially recovering Rs 6,963 crore (excluding interest) that the airline owes to a consortium of lenders. The notice on SBICap website states that the assets to be auctioned include forklifts, cranes, towing machines, tractors, tempos, cars, trolleys, ladders and aircraft pullers. So the bid must be for all the assets collectively – the reserved price mentioned is Rs 65 lakh.
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Among other assets of Kingfisher that face an e-auction is Kingfisher House – Kingfisher Airline’s corporate office in Mumbai – this will be held on December 19 by SBICAP Trustee Company for a reserve price of Rs 115 crore. Due to lack of interest from prospective buyers, the previous two attempts for the same in the month of March and August failed. For this time, December 16 has been considered as the last date for submission of bid application documents, EMD amount and KYC documents. The bidders are required to submit 10% of the reserve price or Rs 11.5 crore as the EMD amount. The reserve price of the property has been reduced by 23% from the first auction at Rs 150 crore. Also, SBICAP Trustee Company will hold an e-auction of the Kingfisher Villa in Goa on December 22 for a reserve price of Rs 81 crore. As usual, the previous attempt in October had failed owing to lack of interest from prospective buyers.
The public notice said that Mallya owed banks over Rs 6,963 crore and the auctions are the part of recovery process of dues from the airline’s promoter Vijay Mallya, under Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act (Sarfaesi), 2002. The lenders are facing acute problems in recovering the loans as their efforts have met with multiple hurdles.