Mumbai: Public sector lenders’ efforts to restore their Rs 6,000-plus cr from grounded Kingfisher Airlines have again hit a block, with no serious bids for the carrier’s trademarks, which they have tried to public auction.
Last month, SBICAP Trustee Company Ltd had invited individuals & companies, in an Expression of Attention (EOI), to bid for 9 trademarks registered with Kingfisher. The last time date was Apr 21. The trademarks were pledged with the consortium of banks as a security against Rs 6,500 cr of loans.
Once the airline defaulted on spending its expenses, the banks began selling pledged shares of UB Group companies, of which Kingfisher is a part. They started with those of United Spirits & Mangalore Chemical Fertilizers, getting about Rs 600 cr. Last month, they put the airline’s trademarks for selling.
An executive from a public sector bank said, “SBICAP obtained a few reactions but these were not serious provides. Some of the bids were not even in the recommended structure.’’
The bankers will meet next week to discuss the next action, he included. Recovery of unpaid loans from selling of trademarks is not common for Indian banks. “Valuation of trademarks is another issue,’’ the executive included.
In its 2012-2013 yearly review, Kingfisher said at its optimum it was the biggest airline in India, with a five-star rating from Skytrax. A brand valuationby Grant Thornton put its value at $550 million on resumption of operations. The airline’s brand had been registered separately from the Kingfisher beer trademark.
An SBICAP trustee said the EOI was not a bid but a non-binding invites, expressing interest in acquisition of various trademarks relevant to Kingfisher. The EOI would be regarded completely for identifying the approximated industry value of the trademarks & the interest of potential customers.
The trademarks for which the EOI was issued included Fly Kingfisher, Traveling Models, Fun liner, Fly the Good Times, Kingfisher & Flying Bird Device, registered in the name of Kingfisher Airways or held by the UB Group but transferred to the airline for use.
Kingfisher suspended operations in Oct 2012 & its operating permit expired in Dec that year. Efforts to get back the airline have achieved nowhere.
EPC World News Bureau
The post Brand Kingfisher Airlines have hit again a block (No takers) appeared first on EPC World.