Creditors move on Kingfisher assets
Experts say the banks' attempt is likely to be a long, drawn-out process as loan recoveries are often stalled for years.
August 23, 2013
Indian banks who are owed nearly US$1.4 billion by the country’s Kingfisher Airlines have moved to seize the carrier’s headquarters building, Kingfisher House, which has also has been targeted by Indian tax authorities seeking to recover unpaid service taxes.
Experts say the banks’ attempt is likely to be a long, drawn-out process as loan recoveries are often stalled for years as borrowers fight foreclosures and India’s debt recovery tribunals are bogged down by backlogs of over 40,000 cases, with a combined value of nearly US$24 billion, according to Indian media.
Kingfisher’s creditors are also said to want some of the cash that Kingfisher affiliate United Breweries received from UK-based Diageo for a 25 per cent stake in United’s United Spirits.