German bank says may repossess 2 Kingfisher aircraft

Singapore: Germany's DVB Bank SE said it may repossess two Airbus A320 aircraft from troubled Kingfisher Airlines Ltd if the carrier failed to meet its commitment to the lender in due time.
The cash-strapped carrier, controlled by liquor baron Vijay Mallya, is having trouble making interest payments and paying salaries.
"It is a painful situation, it requires a lot of time and work," Bertrand Grabowski, a member of the board at the bank which oversees the aviation business, told Reuters on Friday. "We have said to Vijay (Mallya) that we cannot continue like this. If we are not paid on due time, we will certainly consider repossession of the aircraft," he said, while declining to comment if there was a certain deadline the bank had set.
“DVB has purportedly said they may repossess two aircraft if we do not pay them as agreed. Kingfisher Airlines fully intends to honour its payment obligations to DVB and other lessors,'' a Kingfisher spokesperson said.
14/01/12 Business Standard

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Categories: Foreign Jan 2012, Kingfisher Jan 2012