I-T department stakes first claim to Kingfisher Airlines' assets

The income tax department has asserted that its claim over the seized assets of Kingfisher AirlinesBSE -2.33 % ( KFABSE -2.33 %) will have priority over that of other lenders. The company deducted tax at source from employees' salaries and other payments for many years but failed to remit it to the government . The company owed the I-T department over Rs 350 crore, according to the chief commissioner of income tax, Bangalore.

The department attached all assets of the company and is rec ..


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Kingfisher case: HC admits banks' plea

Justice Anand Byrareddy of the high court on Friday admitted a petition filed by SBI and a consortium of 13 banks. They have sought the winding up of the beleagueredKingfisher Airlines Ltd (KAL).

The judge deferred the hearing as well as the process of issuing public notice about the winding-up process till the second week of January in order to hear arguments from both sides.

KAL counsel submitted a copy of an email sent to SBI with regard to the steps being initiated for reviving the company, including engaging the banks directly, the biggest creditors in the process.

However, banks' counsel told the court that no details are forthcoming about the revival in this communication. He added that KAL could have engaged the banks much earlier.

The judge extended the interim order restraining the SBICAP trustee company from taking possession of Kingfisher House, a prime property in Mumbai, which also houses the airline's main office.

More: http://timesofindia.indiatimes.com/india/kingfisher-case-hc-admits-banks-plea/articleshow/26983769.cms

Kingfisher Airlines reports massive Rs 716 cr loss in Q2

Kingfisher Airlines, which is grounded for over a year, on Friday reported a massive Rs 716 crore net loss in the September quarter.

In the year-ago period, the airline had reported net loss of Rs 754 crore, Kingfisher said in a filing to the stock exchanges.

The airline, headed by liquor baron Vijay Mallya, has been grounded after employees went on strike demanding salaries.

Despite not paying salaries for the past 14 months, the company allocated Rs 50.8 crore towards employee expenses in the reporting quarter, against Rs 59 crore in the year ago period.

Similarly, in default of debt servicing since January 2012, the crippled carrier's financial result statement shows Rs 345.5 crore towards finance costs as against Rs 421.4 crore year ago.

From January 2012, the company has not been servicing its over Rs 7,500 crore bank loans and bankers are in the recovery process. So far, banks have been able to recover only around Rs 1,000 crore by selling pledged shares.

The airline reiterated on Friday that it is exploring various options to recapitalise and resume operations and talks are on with prospective investors.

Shares of Kingfisher Airlines fell by 1 per cent to Rs 5.64 on Friday on the BSE. It is currently valued at Rs 456 crore.

On Thrusday, low-cost carrier SpiceJet reported a whopping Rs 559 crore net loss in the September quarter, while the second largest Jet Airways group last month reported a record quarterly loss of Rs 891 crore.

More: http://businesstoday.intoday.in/story/kingfisher-airlines-q2-net-loss-revenues-stocks/1/200438.html