No takers for Brand Kingfisher Airlines

Public sector lenders’ attempts to recover their Rs 6,000-plus crore (Rs 60 billion) from grounded Kingfisher Airlines have again hit a block, with no serious bids for the carrier’s trademarks, which they’ve tried to auction.

Last month, SBICAP Trustee Company Ltd had invited individuals and companies, in an Expression of Interest, to bid for nine trademarks registered with Kingfisher.

The last date was  April 21.

The trademarks were pledged with the consortium of banks as a security against Rs 6,500-crore (Rs 65-billion) of loans.

. . .

After the airline defaulted on paying its dues, the banks began selling pledged shares of UB Group companies, of which Kingfisher is a part.

They began with those of United Spirits and Mangalore Chemical Fertilisers, getting about Rs 600 crore (Rs 6 billion).

Last month, they put the airline’s trademarks on sale.

An executive from a public sector bank said, “SBICAP received a few responses but these were not serious offers.

“Some of the bids were not even in the prescribed format.’’

The bankers will meet next week to discuss the next action, he added.

Recovery of unpaid loans from sale of trademarks is not common for Indian banks.

“Valuation of trademarks is another issue, the executive added.

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In its 2012-13 annual report, Kingfisher said at its peak it was the largest airline in India, with a five-star rating from Skytrax.

A brand valuation by 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 invitation, expressing interest in acquisition of various trademarks related to Kingfisher.

The EOI would be considered solely for determining the estimated market value of the trademarks and the interest of prospective buyers.

. . .

The trademarks for which the EOI was issued included Fly Kingfisher, Flying Models, Funliner, Fly the Good Times, Kingfisher and Flying Bird Device, registered in the name of Kingfisher Airlines or held by the UB Group but transferred to the airline for use.

Kingfisher suspended operations in October 2012 and its operating permit expired in December that year.

Attempts to revive the airline have reached nowhere.

. . .

GROUNDED

• Last month, SBICAP Trustee Company had invited individuals and companies, in an Expression of Interest, to bid for nine trademarks registered with Kingfisher
• The EOI would be considered solely for determining the estimated market value of the trademarks
• No serious bids received till last date, April 21
• The trademarks were pledged with the consortium of banks as a security against Rs 6,500-crore (Rs 65-billion) of loans
• A brand valuation by Grant Thornton put the airline’s brand value at $550 million on resumption of operations

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