Friday, May 03, 2013

Kingfisher Airlines lenders set to file Sarfaesi Act claim

Mumbai: The consortium of lenders to Kingfisher Airlines (KFA) will file a claim under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (Sarfaesi) Act in a day or two. But it seems unlikely banks will be able to recover a meaningful chunk of their dues of Rs7,000 crore any time soon.
In February, State Bank of India (SBI) deputy MD Shyamal Acharya had said banks held collateral worth Rs6,500 crore against loans to Kingfisher Airlines. This included the Kingfisher brand, limited to the airline, which, according to media reports, was valued at around Rs4,100 crore by audit firm Grant Thornton India at the time the loan was given.
03/05/13 Aftab Ahmed/Viswanath Nair/Financial Express