Consortium of banks efforts to salvage a part of the money loaned to Vijay Mallya’s Kingfisher Airlines failed as the auction of various Kingfisher brands and logos failed to attract any buyers. These logos and brands were used as guarantee at the time of the loan. But the auction failed as no buyers turned up. Minimum bid amount for the auction was set at 366.70 crores.
Last week the consortium tried to auction off “Kingfisher House”, Kingfisher Airlines’ posh office in Andheri, Mumbai. The minimum bid amount of this 17,000 sq. ft building was set at 150 crores but it failed to attract any buyers. A number of brands and logos went under the hammer including “Fly The Good Times”, “Funliner”, “Fly Kingfisher” and “Flying models”.
There are multiple schools of thought as to why the brands failed attract any buyers. Tow prominent thoughts are that the brands are not that attractive for any new business and the consortium is bidding at too high a rate in order to get back as much of the loaned money as possible. Currently the Kingfisher Airlines brand is estimated to have a value of only 6 crores.
In the mean time, Vijay Mallya has refused to come back to India citing hostile and aggressive situation in the country. Indian government has already cancelled his passport and trying to get him extradited to India at the earliest.